Social Media platform Reddit will seek a stock market debut in March, according to reports by Reuters.  Reddit’s plans for an Initial Public Offering (IPO) have been stalled for the past three years after the company filed confidentially for its IPO in December 2021.

Reddit to launch an IPO in March

Reddit is planning to go public with its IPO as early as March. According to reports by Reuters, the social media behemoth, which registered in secret for its IPO in December 2021, intends to file publicly in late February. Reuters also said that Reddit would start its public listing in early March and finish the IPO by the end of the month.

The IPO comes at a time when social media giants are already grappling with a decline in ad revenues making their market valuations swing into the doldrums.  The stock debut will also be the first for a social media company since Pinterest went public in 2019.

Reddit to sell 10% shares in IPO

According to the Reuters, Reddit plans to sell roughly 10% of its shares during the IPO. The sources that confirmed the news for Reuters, state that the media platform will make a decision on valuation closer to the listing date.

The company was previously valued at over $10 billion at a fundraising round in 2021.

However, Reuters also cautioned that the timeline for Reddit’s IPO could change just like it did last time.

Reddit’s IPO to probably give a bull run for its NFTs

Reddit’s venture into crypto currencies and NFTs had seen an upscale in the social media platform’s reach.

During the 2021 crypto bull run, Reddit NFTs gained popularity and rocked the whole cryptocurrency industry. The non-fungible tokens (NFTs) gained attention in the cryptocurrency sector when they were auctioned for millions of dollars. Well-known individuals and well-established businesses quickly invested in these distinctive digital tokens for a variety of uses.

Its crypto expansion also has investors collect digital currencies via the social media platform. One such cryptocurrency connected to Reddit was called Moons.

Both the NFTs and digital tokens immediately gained popularity among all the other traditional sites, drawing enthusiasts and platform users.

However, the delayed IPO drew investor concern making users dicey over the platform’s profitability.

In the past three years, numerous “meme” stock surges have been fueled by posts made by numerous investors on the platform. In a positive market turn, Reddit’s IPO will possibly help regain investor confidence. This could probably lead to Reddit’s NFTs and crypto tokens going for a bull run.

 

 

 

The post Breaking: Reddit to Go Public in March After a Much Delayed IPO appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am