Reddit Eyes IPO In March, To Become The Only Social Media Company To Get Listed In Last 5 Years

Nearly five years after Pinterest’s IPO in 2019, another major social media platform is set to get listed soon. This time its Reddit. About two years after the news of Reddit planning for an IPO came out, the social media platform seems set to finally go for its public listing.

Reddit To Launch IPO In March

reddit ipo/techbook

Reddit has drawn up detailed plans to launch its IPO (initial public offering) in March 2024. The IPO is expected to test the willingness of Reddit users to back the company’s stock market debut. Reddit users’ conversations have often been known to fuel dozens of ‘meme’ stock rallies in the last few years, from?GameStop?to?AMC?Entertainment Holdings.

Reddit is planning to file its IPO in late February, then launch its roadshow in early March, and finally complete the IPO by the end of March, as per a Reuters report.?San Francisco-based Reddit was last valued at about $10 billion in a funding round in 2021. It is seeking to sell about 10% of its shares in the March IPO.

reddit ipo launch march/shutterstock

Also Read:?ITC Likely To Launch Separate?IPO?For Its Hotel Business In 2024

When Was Reddit Founded?

Founded in 2005 by Steve Huffman and Alexis Ohanian, Reddit?went on become best known for its niche discussion groups and its users voting “up” or “down” on the content posted by fellow members.

The company, which generates its revenue primarily through advertising and also offers premium access for $5.99 per month, has yet to turn a profit, CEO Huffman had last year mentioned in a? Reddit post.

First Major Social Media IPO In 5 Years

If Reddit manages to launch its IPO in March, it would be the first IPO by a major social media platform since?Pinterest’s?stock market debut in 2019. The IPO comes at a time when Reddit is facing stiff competition from the likes of Facebook and TikTok.

pinterest ipo 2019/searchenginejournal

One thing that can be seen as a silver ahead of Reddit’s IPO is that the shares of major social media platforms have witnessed a good 2023. Mark Zuckerberg owned?Meta’s shares soared more than 160% in 2023, Pinterest’s shares shot up more than 35% in 2023, and Snapchat?shares saw a more than 65% jump last year.

Meta (formerly Facebook) had launched its IPO in May 2012, whereas Snapchat IPO came in March 2017.

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