Reddit has announced that it has filed for an Initial Public Offering (IPO) with the US Securities and Exchange Commission (SEC), which will make its common stock available to the public.
Details of the offering are scarce, as the company is keeping all the information confidential until everything has been finalised and approved by SEC. Reddit says that the number of shares and the price range to be offered have yet to be determined — of course, it also hasn’t revealed anything about the company’s valuation or even when the public offering will take place.
One hint of how much Reddit is worth could be when the social media platform received a US$700 million (~RM2.9 billion) private funding back in August, at a valuation of US$10 billion (~RM42 billion).
That being said, Reuters reported in September that Reddit started hiring investment bankers for an IPO, and hoped that the company would be valued at more than US$15 billion (~RM63 billion) by the time it starts trading next year. Reddit was worth US$3 billion (~RM12.6 billion) back in 2019, so this would be a five-fold increase in just three years if true.
In the second quarter of this year, the platform generated $100 million in advertising revenue for the first time, 192% more than what it made in the same period of 2020. Reddit also revealed last year that it had more than 52 million daily active users and more than 100,000 subreddits.