Reddit: Files from a social media platform will be made public
Reddit, a social media platform, has announced that it has begun the process of selling its stock on the stock exchange. In a secret filing, it did not say how many shares it planned to sell or at what price.
The company said in August that it had raised $700 million (£528 million) in new capital, valuing it at more than $10 billion.
Earlier this year, Reddit was at the centre of the meme stock phenomenon.
In a statement with the US Securities and Exchange Commission, Reddit stated, “The initial public offering is planned to occur when the SEC completes its review process, subject to market and other conditions.”
Investors flocked to the San Francisco-based firm’s message board earlier this year for advice on trading stocks like US video game retailer GameStop and the AMC movie theatre chain, which are known as “meme stocks,” or equities that gain popularity through sites like Reddit.
Stocks that had been widely bet against by sophisticated investors, such as hedge funds, often became popular.
As a result, the values of several of these stocks rose and fell dramatically in a very volatile market. Reddit’s co-founder and CEO, Steve Huffman, told the New York Times in August that the company was still intending to ongoing public but didn’t have a set date.
According to the Reuters newswire, the corporation was valued at more than $15 billion the next month. As of August this year, Reddit, which was launched in 2005, has over 52 million daily members.
The company announced earlier this year that by the end of 2021, it wanted to quadruple its headcount to around 1,400 people.
Tencent, a Chinese technology company, Fidelity Investments, and Sequoia Capital, a venture capital firm, are among Reddit’s main financial backers.