Reddit is preparing to launch its initial public offering (IPO) in March, according to a new report from Reuters. The report notes that the move comes more than three years after the San Francisco-based social media platform first began eyeing an IPO. Reddit is planning to make its public filing in late February and complete the IPO by the end of March.
The company is looking to sell around 10% of its shares in the IPO, and will decide on what IPO valuation to pursue closer to the time of the listing. However, Reuters sources cautioned that Reddit’s IPO plans could potentially be pushed back, which has happened in the past.
Reddit declined to comment on the matter.
The news comes nearly two months after Bloomberg reported that Reddit was holding talks with potential investors for an initial public offering.
Reddit, which was founded in 2005, confidentially submitted a draft registration statement with the Securities and Exchange Commission to go public in December 2021, but those plans never materialized. The move took place just months after Reddit had raised $410 million in a Series F funding round led by Fidelity, valuing it at $10 billion. At the time, it had plans to close out the round at $700 million.
In January 2022, it was reported that Reddit was working with Morgan Stanley and Goldman Sachs to go public and was considering a valuation of as much as $15 billion.
The company has yet to turn a profit, Reddit CEO and co-founder Steve Huffman revealed last June. Reddit has held off on launching an IPO until it came closer to profitability. Its IPO plans have also been delayed due to uncertainty around the IPO market over the last two years, Reuters notes.
The Information reported a few weeks ago that Reddit expected to finish 2023 with ad revenue up more than 20% to slightly over $800 million.