Amid a record number of initial public offerings (IPOs) in the U.S. market in 2021, social media platform Reddit, Inc. has confidentially filed for an IPO with the U.S. Securities and Exchange Commission (SEC), Reuters reported.
In a statement on Wednesday, the company said, “The number of shares to be offered and the price range for the proposed offering have not yet been determined. The initial public offering is expected to occur after the SEC completes its review process, subject to market and other conditions.”
Supporting Factors for the IPO
Founded in 2005 by CEO Steve Huffman and entrepreneur Alexis Ohanian, Reddit’s daily active users had reached around 52 million, with more than 100,000 active subreddits as of October 2020. Additionally, the company earned $100 million in advertising revenue for the first time in the second quarter of 2021, which almost tripled on a year-over-year basis.
Markedly, at the beginning of the year, the company witnessed a rise in interest after a forum on the site, WallStreetBets, attracted retail traders who were able to whipsaw the prices of so-called meme stocks.
The San Francisco-based platform that fueled this year’s trading frenzy was valued at $10 billion by investors in a private fundraising round this summer.