Social media platform Reddit has drawn up detailed plans to launch its initial public offering (IPO) in March, moving forward with a listing it has been eyeing for more than three years, according to people familiar with the matter.
It would be the first IPO of a major social media company since Pinterest's debut in 2019, and would come as Reddit and its peers face stiff competition for advertising dollars from the likes of
TikTok and Facebook
The offering would also test the willingness of some Reddit users to back the company's stock market debut. Many investors posting on the platform have helped fuel dozens of "meme" stock rallies in the last three years, from retailer GameStop to movie operator AMC Entertainment Holdings.
Reddit, which filed confidentially for its IPO in December 2021, is planning to make its public filing in late February, launch its roadshow in early March, and complete the IPO by the end of March, two of the sources said.
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The San Francisco-based company, which was valued at about $10 billion in a funding round in 2021, is seeking to sell about 10% of its shares in the IPO, the sources added. It will decide on what IPO valuation it will pursue closer to the time of the listing, according to the sources.
The sources cautioned that Reddit's IPO plans could be pushed back, as has happened in the past, and asked not to be identified discussing confidential deliberations.
A Reddit spokesperson declined to comment.
