The 16-year-old social media platform Reddit has confidentially filed paperwork with the U.S. Securities and Exchange Commission for an initial public offering.
The company said in a statement that it hasn’t determined the number of shares to be offered or the price range of the IPO yet.
“The number of shares to be offered and the price range for the proposed offering have not yet been determined,” it said. “The initial public offering is expected to occur after the SEC completes its review process, subject to market and other conditions.”
As of August, Reddit had a valuation of about $10 billion after raising more than $400 million from Fidelity Investments. In February, the company raised nearly $500 million at a valuation of $6.5 billion. Founded in 2005 by Steve Huffman and entrepreneur Alexis Ohanian, Reddit has raised $1.3 billion in funding so far. Its biggest investors include Andreessen Horowitz, Fidelity Investments, Sequoia Capital and Tencent Holdings.
Reddit’s ad revenue was $100 million in the second quarter of 2021, marking a 192% year-over-year increase for the quarter. The company has seen explosive growth as retail investors flocked to the app for seeking advice on trading GameStop Corp and other so-called meme stocks earlier in the year.
Thanks to the ‘’meme stocks’’ trend in the financial world, monthly app installs of Reddit surpassed 6 million in January making it the best month ever for the app in terms of downloads.
Back in September, Reuters reported that Reddit was hoping for a more than $15 billion valuation by the time an IPO takes place.