Reddit, which registered for an IPO privately in December 2021, plans to file publicly late February and launch their roadshow early March, sources informed Reuters.
This online message board is well-known for its diverse discussion groups and user-curated content curation. It generates revenue through advertising as well as its $5.99 premium access subscription fee.
IPO timeline
Reddit, the social media platform that gave rise to meme stock speculation, plans on holding an initial public offering (IPO) next month with an estimated market value of $15 billion, according to reports.
San Francisco-based startup Qualtrics Inc, valued at $10 billion after its 2021 funding round, announced Thursday plans for public filing and roadshow events to start later that month and early March respectively, according to Reuters reports. They plan on making their decision regarding valuation closer to listing date according to sources.
Reddit has yet to reach profitability and faces stiff competition for advertising revenue from TikTok and other social media platforms, such as those created since 2005 such as TikTok and Snapchat. Reddit is best known for its niche discussion groups where members can vote up or down content posted by others; additionally it offers a $5.99-a-month premium subscription service and has amassed a net worth of one billion with investments by Steve Huffman and Alexis Ohanian.
Valuation
Reddit was launched in 2005 and quickly established itself as a popular discussion forum that allows users to vote “up” or “down” on content. While its primary source of income is advertising revenue, premium access services also generate some profit for Reddit; despite its widespread usage and widespread user engagement with advertisements across other social networks such as Facebook or Instagram. Unfortunately, though Reddit may appear popular today, its creators still have yet to turn a profit due to investments into its platform and lower user engagement with ads than on other social networks like LinkedIn or Twitter.
As the market recovers from its recent slump, IPOs should rise substantially this year. Last week’s launch of homebuilder Bright Spring and this week’s debut of mortgage lender Smith Douglas Homes show investor appetite is improving for initial public offerings (IPOs).
Reddit could become the first major social media company since Pinterest to go public in 2019. Reddit will face an uphill struggle when valuing itself to meet investor satisfaction; their valuation process must strike a delicate balance between realizing its valuation potential and satisfying investors with their offering.
Roadshow
Reddit hasn’t given details on its initial public offering (IPO), including share pricing or valuation, yet is projected to raise around $800 million from investors. Furthermore, no announcement has been made as to the exchange where its listing will occur or which ticker number it will use – these details should become available as Reddit gets closer to its IPO date.
Reddit is a social media platform that enables users to publish text posts, links, images or videos within subreddits on a variety of topics. Reddit has earned recognition for adapting quickly to emerging technological trends like artificial intelligence and Web3 technology.
San Francisco-based company to offer about 10% of shares during IPO. They confidentially filed for an IPO back in December 2021 and plan on making their filing public in late February; roadshow will start early March followed by completion of IPO later in that month.
Investors
Reddit is seeking investors that can manage the high degree of volatility inherent in being publicly traded, as well as taking advantage of an overall trend among social media stocks, with companies like Meta Platforms and Snap posting significant price gains over the past year.
A major social media IPO would mark a notable milestone since Pinterest debuted its offering in 2019. The news comes at a time when advertising dollars from platforms like TikTok are becoming increasingly difficult to secure.
Reddit users would be put to the test in their support of its stock market debut. Reddit is widely known for its lively discussion groups and has played an instrumental role in meme-driven stock rallies such as those for GameStop and AMC Entertainment Holdings. Most of its revenue comes from advertising; premium access subscriptions cost $5.99 monthly; last valued at $10 billion during a 2021 funding round.
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