According to multiple media reports, U.S. social media platform Reddit is preparing to hold its initial public offering (IPO) in March of this year.
Reddit’s IPO would be the first from a major American social media company since Pinterest’s (PINS) market debut in 2019.
Reddit has been wanting to hold its IPO for three years but repeatedly delayed it due to the Covid-19 pandemic and bear market that occurred in 2022.
Media reports say that Reddit is now planning to make its regulatory filing in late February, hold its roadshow in early March, and complete the IPO by the end of March this year.
The San Francisco-based company, which has been valued at $10 billion U.S. in previous funding rounds, is reportedly seeking to sell about 10% of its shares in the IPO.
The company, which was founded in 2005 and runs online message boards, generates most of its revenue from online advertising. It has yet to turn a profit.
The company has attributed its ongoing losses to investing in the platform and the fact that its users engage less with advertising than on other social media sites.
Reddit executives have previously said that they expected to earn $800 million U.S. in advertising revenue during 2023, up more than 20% from a year earlier.
Reddit is expected to list its stock on the Nasdaq exchange. The ticker symbol the company will use is not yet known.
Tech Insider
