Reddit revealed that it had made a confidential filing with the U.S. Securities and Exchange Commission (SEC) in preparation for an IPO.
Reddit is a social news website and forum where users curate and share content through voting. The site name plays on the words “I read it.” Registration is free and requires you to use the website’s basic features.
Reddit is popular despite its primary interface. Users return to the site because of the high-quality content it offers. Users on Reddit are highly active, posting something new and exciting every day.
Confidential filing and its benefits:
On its draft registration statement filed on SEC Form S-1, Reddit states that neither the number of shares to be offered nor the offering price is specified. Depending on the market and other factors, the offering will occur after the SEC completes its review.
Reddit can work with the SEC privately to ensure that its first public filing is much cleaner by confidentially filing its draft registration statement.
Until that time comes, Reddit can protect sensitive information related to its users, customers, and revenue.
It has yet to decide on how many shares and what price range it will offer, the company said, noting it was in a quiet period and could not reveal more information for regulatory purposes, as is standard practice.
The company has raised more than $1 billion from private investors, including Fidelity, Sequoia Capital, Andreessen Horowitz, and Tencent Holdings. With the IPO, Reddit is expected to be valued at $15 billion, increasing $10 billion from its current valuation.
There have been rumours about them considering an IPO for some time; in August, they announced they raised $700 million at a valuation of over $10 billion in a funding round. Reddit announced in August that it had made $100 million in ad revenue for the second quarter of 2021, up nearly 200 per cent from the year before. It was announced earlier this year that the company plans to double its staff by the end of 2021 to 1,400.
