The media reports that Reddit is currently negotiating with potential investors about an initial public offering (IPO).
Journalists, referring to insiders who provided information on the condition of anonymity, claim that currently the mentioned company, operating in the social media industry, is considering the possibility of placing its securities on the stock exchange in the first quarter of next year.
In response to a media request about plans for an IPO, Reddit representatives declined to comment, saying that the firm is in a period of quiet. This company, according to insiders, is working with investment banks as part of the study of the prospects for the implementation of the possibility of placing securities on the stock exchange. Last year, the media published information that Reddit was considering a valuation of up to $15 billion.
In a sense, the company’s desire to place shares is a symptomatic example of the fact that firms’ interest in public markets is gradually recovering. The corresponding intentions of other brands are already forming a kind of set of signs of a large-scale trend. The current situation is explained by the fact that the state of affairs in the IPO sector is improving.
In the United States, the public stock market has recently been in a bad position due to the impact of several negative factors. In this case, the situation was influenced by the insignificant results of high-profile debuts, which became something like a textbook example of how great hopes are dashed against the symbolic rocks of reality, refuting assumptions and plans. The volatility of the markets has also become an influence factor.
Returning to the study of IPO plans as a kind of general trend in the business sector, it should be noted that many companies are considering entering the stock exchange shortly. For example, Rubrik, a startup operating in the sphere of cloud technologies and data security, is considering a public offering of shares in the first quarter of next year. This firm receives support from Microsoft. The Skims underwear brand, founded by Kim Kardashian, is discussing various strategic options for action in 2024, including an IPO. This company is valued at $4 billion.
Firms’ plans may change, but the fact that they are considering an IPO as a potential option is already evidence that interest in public markets is growing.
Experts predict that the volume of IPOs for 2023 will exceed the figure of last year. Also, in their opinion, the situation in public markets will improve next year.
Reddit submitted a draft application for registration as part of the S-1 application to the Securities and Exchange Commission (SEC) in December 2021. Four months earlier, the company’s value during the financing round exceeded $10 billion. The listing was postponed due to a lack of profitability.
Reddit was founded in 2005. Since then, the company has become one of the largest players in the social media industry. In May of this year, the media reported that the firm plans to move forward in the space of social commerce. This decision could increase the evaluation of the social media platform and allow preparing for the IPO.
As we have reported earlier, Reddit introduced new real-time features.