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Reddit, the social media platform that bred the meme stock craze, is going public in March.
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The company plans to file in February and complete its IPO by the end of March, sources told Reuters.
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The IPO market is starting to thaw as investors anticipate Fed rate cuts in 2024.
Reddit, the social media platform that spawned the meme stock craze, is reportedly planning to go public in March.
The company filed confidentially for an initial public offering in December of 2021, and is now planning to publicly file in February. The deal roadshow will kick off in early March, with hopes of completing the offering by the end of that month, sources told Reuters on Thursday.
IPO plans could be delayed, the sources warned, pointing to similar instances in the past. If Reddit does successfully complete its IPO, it would be the first social media company to do so since Pinterest went public in 2019, according to Reuters.
Reddit was valued around $10 billion in a 2021 funding round, though the company’s official valuation when it goes public has yet to be decided, the sources added. The company plans on selling 10% of its shares in the IPO launch.
Reddit declined to comment further.
Cofounder Steve Huffman said in June that Reddit remains unprofitable, though ad revenue for 2023 was reportedly expected to jump 20% to $800 million.
Higher interest rates have weighed on asset prices, cratering the valuations of companies that had gone public in 2020 and 2021. Pinterest, for reference, has plummeted 57% from its all-time-high in 2021.
But the ice-age in IPO will likely thaw in 2024, some commentators say, thanks to growing hope that the Fed will slash interest rates this year as inflation cools.
Markets are pricing in around six rate cuts by the end of December, according to the CME FedWatch tool – about double the amount Fed officials have officially projected for the year.
Read the original article on Business Insider