Friday, February 23, 2024, 9:13 a.m
Social media site Reddit filed for a highly anticipated initial public offering on the New York Stock Exchange in March.
Social media site Reddit filed for a highly anticipated initial public offering on the New York Stock Exchange yesterday, planning an unusual offering to allow its users to get into the stock at its debut.
In an initial public offering filing with US regulators, the social media site also said its losses had narrowed to $90.8 million (£72 million), while revenue in 2023 fell 21 percent to $804 million US dollars (634 million pounds) had increased.
The IPO is expected to be a major test for the platform, which has lagged behind the commercial success of rivals such as Facebook and Twitter.
In its filing, Reddit said the IPO would allow its users to buy into the stock upon its debut to increase their “sense of ownership” in the company.
“We want this sense of ownership to translate into real ownership – so that our users are our owners. Conversion to a publicly traded company makes this possible,” the company’s chief executive and co-founder, Steve Huffman, wrote in his filing. “With this in mind, we are pleased to invite the users and moderators who have contributed to Reddit to join our investors in purchasing shares in our IPO.”
Reddit said it had an average of 73.1 million daily active users and 267.5 million weekly active users in the three months ending last year, with over 100,000 active communities on its platform and 1 billion cumulative posts.
Reddit was founded 18 years ago and was valued at $10bn (£7.9bn) in a 2021 funding round. However, it is unclear what valuation the company is seeking in its stock sale in the coming weeks. The company is expected to seek a sale of nearly 10 percent of its shares in the IPO, Reuters previously reported.
The filing revealed that boss Steven Huffman holds Class B common shares, which can be issued if the vesting condition is met that Reddit achieves a market capitalization valuation of $5 billion (£4 billion) following the offering. The company is expected to break through that price tag in its debut.
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Reddit plans to go public in March after three years of considering it, according to reports
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