On December 15, Reddit Inc, whose message boards became the go-to destination for day traders during this year’s meme stock frenzy, said it had confidentially filed for an initial public offering (IPO) with U.S. securities regulators.
According to a Reuters report in September, the company was hoping to hit a valuation of more than $15 billion by the time it planned to list its shares.
In a pitched battle between small-time traders and some of the big Wall Street firms that drove big gains in highly shorted shares of companies such as GameStop (GME.N) and AMC (AMC.N), the company’s message boards were at the center, while popularizing the term meme stocks.
From a year earlier, Reddit’s value doubled to $6 billion at the height of the trading frenzy in February. In a private fundraising round in August, the company was valued at $10 billion.
Several users on Reddit thread WallStreetBets joked about potentially pumping the offering when it became available. In a post, a Reddit user called 9axle said:
“I’m in. When do we start?”
As of October last year, Reddit, founded in 2005 by Steve Huffman and entrepreneur Alexis Ohanian, had roughly 52 million daily active users and over 100,000 communities, or “subreddits”.
During the second quarter, the San Francisco-based company reported $100 million in advertising revenue, an almost threefold surge from the same period last year.
In July, online brokerage Robinhood Markets Inc (HOOD.O), whose trading app was at the center of the meme stock frenzy, had its IPO.
Over the years, venture capital firm Andreessen Horowitz, funds such as Sequoia Capital and Tencent Holdings (0700.HK), as well as rap superstar Snoop Dogg have been Reddit’s investors.
In the draft registration statement with the U.S. Securities and Exchange Commission (SEC), Reddit did not reveal the number of shares to be offered or the price range of the IPO.