Social media platform Reddit is aiming for a stock market debut in March, according to reports from Reuters. Reddit's initial public offering (IPO) plans had been stalled for the past three years after the company confidentially filed to go public in December 2021.
Reddit is launching an IPO in March
Reddit plans to go public with its IPO as early as March. According to reports from Reuters, the social media giant, which secretly filed its IPO in December 2021, plans to file for a public offering in late February. Reuters also said Reddit would begin listing in early March and complete the IPO by the end of the month.
The IPO comes at a time when social media giants are already struggling with a decline in advertising revenue, sending their market valuations into the doldrums. The stock market debut will also be the first for a social media company since Pinterest's IPO in 2019.
Reddit sells 10% stake in IPO
According to Reuters, Reddit plans to sell around 10% of its shares during the IPO. The sources who confirmed the news to Reuters state that the media platform will make a decision on the valuation closer to the listing date.
The company was previously valued at over $10 billion in a 2021 fundraising round.
However, Reuters also warned that Reddit's IPO timeline could change like last time.
Reddit's IPO is likely to give its NFTs a boost
Reddit's foray into cryptocurrencies and NFTs had led to an expansion of the social media platform's reach.
During the 2021 crypto bull run, Reddit NFTs gained popularity and shook the entire cryptocurrency industry. The non-fungible tokens (NFTs) attracted attention in the cryptocurrency sector when they were auctioned for millions of dollars. Well-known individuals and established companies quickly invested in these distinctive digital tokens for a variety of uses.
With crypto expansion, investors are also collecting digital currencies through the social media platform. One such cryptocurrency linked to Reddit was called Moons.
Both NFTs and digital tokens gained instant popularity across all other traditional websites, attracting enthusiasts and platform users.
However, the delayed IPO raised concerns among investors and raised doubts among users about the platform's viability.
Over the past three years, numerous “meme” stock booms have been fueled by contributions from numerous investors on the platform. If the market turns positive, Reddit's IPO may help regain investor confidence. This could likely cause Reddit's NFTs and crypto tokens to experience a bull market.
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