Reddit announced started the IPO process

has taken the first steps before making an initial public offering (IPO) on US stock exchanges. Reddit is reported to have submitted the S-1 document to the Securities and Exchange Commission (SEC), or the US securities and exchange commission, so that it can be listed on US stock exchanges.

It’s not clear exactly how many shares Reddit will offer, or what the company’s proposed share price range will be, for regulatory reasons. What is clear, Reddit’s IPO submission step has been tracked since last September 2021, where Reddit has set a valuation target of up to 15 billion US dollars.

Read More

See also: Neymar Becomes Exclusive Streamer on Facebook Gaming

Reddit itself is known to have long sought to attract investors’ attention to its forums. In early 2021, the WallStreetBets Reddit sub-forum was formed as a gathering place for investors to recommend stocks.

The sub-forum helped smaller companies like GameStop and AMC be hunted down by stock market players. At the height of the trading fever in February 2021, Reddit’s valuation doubled to $6 billion.

Then in August 2021, Reddit announced it had raised $700 million with a valuation of up to $10 billion. Although Reddit’s valuation is sufficient to conduct an IPO, this figure is still relatively small compared to Twitter’s stock valuation of 35 billion US dollars or Facebook Meta Platforms which reached 1 trillion US dollars.

“(Reddit) expects to be given a substantial price premium for this year’s IPO of common technology shares,” said University of Florida Professor of Finance Jay Ritter.

See also: TikTok users now can upload 1080p videos

For information, Reddit was first founded in 2005 by Steve Huffman and Alexis Ohanian. The company based in San Francisco, California is claimed to have earned advertising revenue of 100 million US dollars in the second quarter of 2021. This figure has tripled compared to the same period in 2020.

Related posts

Leave a Reply

Your email address will not be published. Required fields are marked *