(Reuters) – Social media platform Reddit has a detailed plan to launch its initial public offering (IPO) in March, a listing it has been considering for more than three years, according to people with knowledge of the matter.
If the deal goes through, it would be the first IPO of a major social media group since Pinterest’s debut in 2019. It would come as Reddit and its peers face tough competition. competition in advertising markets from TikTok or Facebook, among others.
An IPO would also serve as a test of interest among some Reddit users in a listing as many retail investors posting on the platform have contributed to the frenzy around “meme” stocks over the past three years, which has affected groups such as GameStop and cinema operator AMC Entertainment Holdings.
Reddit, which confidentially filed its IPO application in December 2021, plans to make its public filing at the end of February, present itself to potential investors in early March during a roadshow and carry out the IPO of here in late March, two of the sources said.
The San Francisco-based group, valued at around $10 billion when it raised funds in 2021, intends to offer around 10% of its shares when it goes public, the sources added.
Reddit will decide on a target valuation closer to its listing, according to sources.
They warned that the project could be delayed, as has been the case in the past, and asked not to be identified.
A Reddit spokesperson declined to comment.
The group, founded in 2005 and known for its discussion groups, generates its revenue primarily through advertising and also offers premium access for $5.99 per month.
It has not yet made a profit, said its leader Steve Huffman in a message published on Reddit last June.
(Reporting Echo Wang and Anirban Sen in New York, with contributions from David French and Krystal Hu in New York, French version Diana Mandiá, editing by Blandine Hénault)
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