Social media platform Reddit has confidentially filed for an initial public offering (IPO) with US regulators last week.
This San Francisco, California-based establishment is getting ready to sell its shares in the New York Stock Exchange, with its IPO anticipated to take place this coming 2022.
We are highly interested in sharing this US stock market-related report with our readers. We are well aware that Reddit is a well-known social media platform for sharing and expressing valuable views about various subjects.
We think our readers, especially those who are Reddit users, will be interested in discovering that this website will hold its IPO very soon.
According to the news posted online by Japan’s oldest English-language daily newspaper, The Japan Times, Reddit is targeting a market valuation of at least US$15 billion, citing September reports.
Its confidential IPO filing happened last Wednesday, December 15. Reddit was expected to go public in this year’s fourth quarter.
Nevertheless, this intended stock market debut at the New York Stock Exchange was moved to early 2022. Sources claimed the IPO size and timing would be subject to market conditions.
In their posts last Thursday, December 16, many Reddit users said they would support the discussion and web content rating portal’s IPO. Reddit is reportedly testing its “meme” stock hype.
This report comes as this social news aggregation portal’s users have fueled dozens of “meme” stock rallies this 2021, such as movie operator AMC Entertainment Holdings Incorporated and retailer GameStop Corporation.
In October, Steve Huffman was present during the Wall Street Journal’s Tech Live conference. He is the Reddit co-founder and chief executive officer, and he informed his audience that time that they are hoping retail investors would play a crucial role in the social media website’s stock market debut.
Huffman remarked that he wants Reddit users to be their shareholders and vice versa. According to Breakingviews, Reddit would be valued at 20-times revenue at a US$15-billion valuation.
This figure is thrice the multiple of Facebook owner Meta Platforms, despite the 16-year-old firm significantly trailing Mark Zuckerberg’s social media platform and other leading social media firms in revenue and users.
Reddit has recently made some efforts to freshen its appeal. It purchased the TikTok-like application Dubsmash in December and has launched real-time features for the first time, like typing indicators and voting animations.
We are pleased to learn about Reddit’s forthcoming US stock market debut. We believe its IPO will be a huge event, especially since its users would be backing it.
We know Reddit is not as popular when placed side by side with Facebook. Nevertheless, we want to highlight the fact that the social media platform established in 2005 in San Francisco, California is also a major entity in the social media scene.
We believe Reddit’s IPO and intent to sell its own shares to stock market investors will increase its relevance. We also believe Reddit will gain more users, and in light of its upcoming IPO this coming 2022, we want to congratulate its stakeholders.