Reddit Inc, which became the go-to destination for day traders during this year’s meme stock frenzy because of its message boards, announced on Wednesday that it has filed a confidential initial public offering with US securities regulators.
Reddit, which was founded in 2005 by Steve Huffman and entrepreneur Alexis Ohanian, was recently valued at $10 billion in a private fundraising round.
Reuters reported in September that the company was hoping for a more than $15 billion valuation by the time an IPO takes place.
The filing comes as IPOs in the United States reached new highs in 2021, propelled by abundant liquidity as a result of accommodating monetary policies. Some of the startups that have gone public in the United States this year include Robinhood Markets Inc, Coupang Inc, and Coinbase Global.
As of October of last year, Reddit has around 52 million daily active users and over 100,000 communities, or “sub-reddits.”
Retail investors flocked to the company’s message boards for trading recommendations on GameStop Corp and other so-called meme stocks at the start of the year, resulting in spectacular growth.
Reddit, based in San Francisco, recorded $100 million in advertising income in the second quarter, up nearly treble from the same period the previous year.
Drew Vollero, who led Snap Inc’s transition to a public business as its first finance chief, was appointed as the company’s first chief financial officer in March.
Fidelity Investments, Andreessen Horowitz, Sequoia Capital, and Tencent Holdings are among the company’s largest investors.
The number of shares to be offered or the price range of the IPO were not disclosed in the draught registration statement filed with the Securities and Exchange Commission by Reddit.