Reddit Plans to IPO in March 2024. The social media platform Reddit is making plans to conduct an initial public offering or IPO in March 2024. The plan, which is a follow-up to an initiative initiated more than three years ago, will be the first IPO of a major social media company since Pinterest went public in 2019.
This IPO plan comes at a time when Reddit and other social media platforms are facing stiff competition for advertising from large platforms such as TikTok and Facebook.
The IPO will also test the willingness of some Reddit users to support the company’s debut on the stock market. Many investors posting on the platform have helped drive dozens of “meme” stock rallies in the past three years, from retailer GameStop to movie operator AMC Entertainment Holdings.
According to sources familiar with these plans, Reddit scheduled a public offering period at the end of February, launched a roadshow in early March, and completed the IPO at the end of March.
The San Francisco-based company, which had a valuation of US$10 billion after a funding round in 2021, plans to sell about 10% of its shares in the IPO. The company will decide what the IPO valuation target will be closer to the listing time.
The sources warned that Reddit’s IPO plans could be delayed, as has happened in the past, and asked not to be named because the discussions are confidential. Meanwhile, a Reddit spokesperson declined to comment on the IPO plans.
