Reddit Announces Confidentially Applying to Go Public, Aiming $15 Billion IPO Valuation

Sneh Dokania December 16, 2021

Today, Reddit has announced its confidentially submitted draft registration statement with the Securities and Exchange Commission (SEC) for proposed initial public offering of its common stock. 

The price range for the proposed offering and the number of shares to be offered have yet to be determined. The initial public offering is expected to occur after SEC's completion of the review process, subject to market and other conditions.

Founded in 2005, Reddit saw close to a 200 percent increase from the previous year (in terms of ad revenue), in its August announcement. The company claimed earlier in the financial year that they planned to double their employees by the end of this year as well.

CEO Huffman has stated in his recent talks with The New York Times that Reddit was “still planning on going public” but didn’t have a firm timeline at the moment, adding that “All good companies should go public when they can.”

The company is targeting a $15 billion valuation for when it gets listed on the US market. And according to Markets Insider, Reddit is working on hiring investment bankers and lawyers with the goal for an initial public offering in early 2022.

With a significant increase in their users, Reddit counted about 52 million daily active users and more than 100,000 sub-reddits as of October 2020. Almost all forms of discussion imaginable are accommodated on the site today.