Reddit paving the way for its IPO

In going public, this social media platform will join listed competitors such as Meta Platforms Inc (META), Pinterest Inc (PINS), Spotify Technology SA (SPOT), and Snap Inc (SNAP).

Reddit has reportedly considered launching its IPO for the past three years. Should this listing be realised, it would be the first since 2019, when Pinterest stepped into the stock trading arena. At present, social media platforms are vying over advertising revenues, and Reddit is up against big names such as Facebook and TikTok.

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Essentially, the company hosts thousands of different communities and encourages diverse conversations while seeking to promote human interaction. One subscriber described it as a topic-driven platform that allows people the freedom to choose what they want to participate in. One user of the platform commented that:

Reddit is essentially the social media for people who hate social media. Pick topics you like, and there is a subreddit for it.

With this IPO, the market can measure the willingness of users to buy into the company. According to Reuters information, Reddit, which confidentially filed for its IPO in December 2021, aims to file publicly at the end of February 2024, embark on a roadshow at the beginning of March, and finalise its IPO before the end of that month.

It seems the company is looking at selling roughly 10% of its stock. In a 2021 funding drive, Reddit held a market value of approximately $10bn. As Reddit IPO plans have previously fallen through, the market is holding its breath to see if this will become a reality.