Reddit wants to take a new step in its development. The social network has filed a file with the American gendarme of the Stock Exchange for an IPO on Wall Street.
Reddit wants to try its luck on the Stock Exchange. The social network, a real heavyweight in its field, will seek new money from investors by entering Wall Street. The company has filed with the SEC, the regulator of the US Stock Exchange, a file confirming its willingness to put its shares up for sale.
A platform valued at 10 billion dollars
The document is not very rich in detail on the IPO. It will take place, as we can imagine, after the green light from the SEC but no date has been announced. Reddit management has yet to determine how many shares to bring to market. According to the last fundraising of the group (700 million dollars) which dates back to August, the platform is valued at 10 billion dollars.
Reddit, however, hopes to achieve a valuation of 15 billion for its IPO, a way to attract even more investors. The company has been preparing for the operation for some time. In March, it hired its first CFO in the person of Drew Vollero, who oversaw the IPO of Snap, the publisher of Snapchat. Then, in September, Reddit brought in the services of investment bankers and lawyers to set the stage for an IPO.
Remember that Reddit was created in 2005, and that the platform has made itself essential as an aggregator of news, discussion space and quite simply a social network. In the second quarter, the service raked in $ 100 million in advertising revenue, up 192% from a year ago during the same period. Something to seduce stock marketers.
