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Reddit did not reveal how many shares it will offer and the price range for the offering. But it said that the IPO will take place after the SEC completes its review process, subject to market and other conditions.
American social news company Reddit Inc has confidentially submitted a draft registration statement with the US Securities and Exchange Commission (SEC) to conduct an initial public offering (IPO). According to the company’s press release, it is “in a quiet period” now. And for regulatory reasons, Reddit can not reveal how many shares it will offer and the price range for the offering.
Hi, we have some news. pic.twitter.com/DjkjBRloHF
— Reddit (@Reddit) December 16, 2021
Earlier, Reddit was rumored to be planning an IPO. In September, we reported it was preparing for a $15 billion-plus initial public offering in early 2022. Besides, those familiar with the matter stated that the company was seeking to hire investment bankers and lawyers to assist in the IPO. Now, after several months, the information is confirmed.
Reddit CEO Steve Huffman said:
“All good companies should go public when they can.”
Before, Huffman was also considering some nontraditional ways to become a public company. He was looking into special purpose acquisition companies (SPACs). But in the end, he decided to go for a traditional IPO.
Reddit is preparing to go public after years of being a highly valuable private company. Therefore, investors would be interested in its earnings results and projections. The company makes most of its revenue from the advertising business. According to Reddit’s statement in August, it reached as much as $100 million in advertising revenue during the second quarter of 2021. In comparison to a year prior, the revenue was up 192%.
Besides, as per the last data from August, Reddit attracted 50 million daily visitors and hosted 100,000 active subreddits.
In August, Reddit also announced it was valued at more than $10 billion after raising an additional $410 million in funding, with the final round expected to grow to up to $700 million. The major investors were Fidelity Investments Inc and Research Company LLC.
Other Achievements in 2021
Other milestones Reddit has made this year so far include an appointment of its first Chief Financial Officer (CFO) Andrew (Drew) Vollero and expanding internationally in the UK, Canada, and Australia. Notably, Canada became the platform’s third-largest user base, with 59% of users aged between 18 – 34, and more than 40% of users being female. Reddit team in Toronto focuses on helping Canadian brands find their home on Reddit. Brands like Tim Hortons, Lenovo, General Mills, CDW, and Call of Duty: Mobile have already shown great results.
The company is actively participating in activities aimed to support cryptocurrencies. In September, its co-founder Alexis Ohanian revealed plans to invest $100 million in social media on the Solana blockchain. He also noted his intention in building social media projects on the public blockchain, emphasizing Solana’s high performance.