Reddit is all set to go for a stock debut, according to reports by Reuters. However, the much-delayed initial public offering (IPO) for the social media platform has created all sorts of speculations around its date, valuation, stock price, and everything else. Here is all you need to know about Reddit’s upcoming IPO.

When will Reddit go public?

Reddit intends to launch its IPO as soon as March. According to Reuters, the social media giant reportedly plans to file publicly in late February. The company had previously registered secretly for its IPO in December 2021.

Additionally, according to the same reports, Reddit plans to complete its IPO by the end of March, having begun listing early in the month.

Why is Reddit’s IPO important?

Reddit’s IPO, if cleared will be the first for a social media company in four years. The last time a social media platform went public was when Pinterest filed for its IPO in 2019.

The stock listing will also come at a time when the biggest social media companies are already struggling with a drop in ad revenue, which is driving down their market values. The decision to go public will now test Reddit’s loyal user base and the company’s credibility as a profitable firm in front of investors.

What is Reddit’s History?

Reddit is an American website that combines conversation, content rating, and social news aggregation. Started in 2005, it is the 18th most popular website in the world as of October 2023. Three housemates from the University of Virginia, Steve Huffman, Alexis Ohanian, and Aaron Swartz, established the social media platform which was later purchased by Condé Nast Publications in October 2006.

Though the company is currently not listed, its shares will trade on the stock exchange just like any other tech stock after the IPO. The purchase of the shares will need the help of a stockbroker or an online site to buy the shares.

What will the company be valued at?

Reddit intends to sell about 10% of its shares during the IPO, according to Reuters. However, the valuation and stock price of the company is still unknown. Reuters in its report has stated that the media outlet will decide on its valuation closer to the listing day itself.

But for reference, during a funding round in 2021, the company was once valued at over $10 billion.

Will the IPO affect the NFTs, and Crypto tokens associate with Reddit?

With its foray into cryptocurrency and NFTs, Reddit has expanded its audience on the social media network.

Reddit NFTs gained traction and shocked the cryptocurrency world during the 2021 bull run. The cryptocurrency industry took notice of the non-fungible tokens (NFTs) after they were auctioned off for millions of dollars. Prominent people and well-known companies bought these unique digital tokens for a range of purposes very fast.

Investors are also collecting virtual currencies through the social media platform as a result of its crypto expansion. Moons was the name of one such cryptocurrency that was linked to Reddit.

Reddit’s NFTs and digital tokens attracted enthusiasts and platform users right away, quickly becoming popular among all other traditional sites.

But investors were uneasy about the postponed IPO, which made customers wary of 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 Reddit IPO: When Will Reddit Go Public and What to Expect? appeared first on CoinGape.

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