Social media platform Reddit has launched its much-awaited IPO. A filing on the United States Stock Exchange (Securities and Exchange Commission) says that the platform is aiming to raise $748 million.
Reddit and its shareholders plan to sell shares for $31 to $34 each. Overall, they intend to sell 15.3 million shares. The IPO will be led by Morgan Stanley, Goldman Sachs Group Inc., JPMorgan Chase & Co., and Bank of America Corp.
A Bloomberg report says that the trading will start on March 21. Reddit, which identifies itself as a “community of communities, driven by interests and passions," said in a statement, “We are going public to advance our mission and become a stronger company. We hope going public will provide meaningful benefits to our community as well.”
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Interestingly, the company made its initial filing in 2021. In the 2021 funding round, the company was valued at around $10 billion. Led by Fiedlity, the company raised $410 million in Series F funding. While it did file registration for an IPO in 2021 with the SEC, it didn’t materialise. However, it didn’t materialise due to the IPO market conditions, as per Reuters.
Reddit co-founder and Chief Executive Officer Steven Huffman said in a statement, “We have many opportunities to grow both the platform and the business, the latter through advertising, monetising commerce on the platform, and licensing data.”
As of now, the only social media platform that filed for an IPO was Pinterest in 2019. Reddit will be the second social media platform to file an IPO.
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