- A few hours ago, Reddit said that it had finished applying for an IPO with the SEC.
- The company said that even though the filing is complete, its nature does not allow the public to view it.
One of the most influential social media companies globally, Reddit, is planning to go public. The company said that it is through with submitting its paperwork to the SEC. However, the files are confidential.
However, Reddit did not disclose how many shares it plans to offer. It also did not say the price range of their shares since their nature of application was confidential.
Reddit has about 52 million daily users and more than 100,000 online communities. Therefore, their urge to open up their ledgers to allow the public to invest with them primarily arises from their impressive user base.
Reddit started revealing this journey in September 2021. However, they refused to offer any extra information after the filing with the SEC.
Reddit’s preparations for an IPO reaches the climax
Reddit hit a valuation of over $10 billion in August after raising $700 million through a funding round. At this time, Reddit said that it had also collected an extra $100 million from advertisements. Being a collection of the Q2 of 2021 only, the advertisements had registered a rise of 192% from the previous year.
In the following month, Reddit said that it sought to employ professionals with technical knowledge to help make drafts of an IPO. One of their spokespersons said that the company’s timing to enter the stocks market was reliant on the market developments.
The company has been private for a long time. However, there were some speculations of its possibility of embracing public investment. Its CEO also leaked some information that his company would eventually go public even though he was unsure of the timing. The CEO, Steve Huffman, said this in an interview with The New York Times earlier in the year.
Since then, no one has known the exact date of filing for the IPO. However, some signs of these possibilities began getting to the light earlier in the year. In March, The company said it was hiring Drew Vollero as its first CFO. Vollero previously worked with Snap in drafting their IPO. The company hoarded information regarding his role in their future till September when they revealed that they are drafting an IPO.
Reddit was cofounded in 2005 by Huffman, Aaron Swartz, and Alexis Ohanian. With time, the platform became famous due to its signature chat groups that edge out all other social media platforms. Despite being successful, the company has never tried to go public before.