(BFM Bourse) – The Reddit forum platform plans to go public in March, according to Reuters. This operation will have a test value since it would mark the largest operation in the sector since Pinterest in 2019.
Forums 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 familiar with the matter.
If the transaction goes through, it would be the first IPO of a large group in the social media sector (in the broad sense) since the debut of Pinterest in 2019.
This would come as Reddit and its peers face tough competition in advertising markets from TikTok or Facebook, among others.
An operation that has test value
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 few years. last 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 on this information to Reuters.
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.
(With Reuters)
SS – ©2024 BFM Bourse