Reddit submits IPO application, valuation may exceed 15 billion U.S. dollars

On December 17th, according to foreign media reports, the large social platform Reddit stated that it had secretly submitted an IPO application to the US Securities and Exchange Commission.

Reddit’s IPO plan was first announced in September, and its goal is to expect a valuation of more than $15 billion when it goes public. During the February trading frenzy, Reddit’s value doubled from last year to $6 billion. In August, the company raised US$700 million at a valuation of more than US$10 billion. Most of the company’s business income comes from advertising. When it raised money in August, the company stated that its advertising revenue in the second quarter of 2021 had reached US$100 million, a year-on-year increase of 192%.

Reddit was founded in 2005, and the cause of its fire at the beginning of this year was that US stock retail investors who were active on the Reddit forum held groups to speculate on meme stocks such as GME, which was called the “US stock retail home base.” As of January this year, Reddit has more than 52 million daily active users and more than 100,000 communities. The company may also be looking at this opportunity to plan an IPO to raise capital for the next international expansion.

In the draft registration statement submitted to the US Securities and Exchange Commission, Reddit did not disclose the number of shares to be issued or the IPO price range. Jay Ritter, professor of finance at the University of Florida, said: “Reddit hopes that its IPO price can be significantly higher than this year’s general technology stocks.”