Per Reuters

Reddit submitted a confidential filing in 2021 with the US securities regulator, initially aiming for an over $15 billion valuation. Now the company could be coming closer as people familiar with the subject, per The Information, say the company is likely looking to go public in the second half of the year.

2022 saw the IPO market at a standstill, with other popular companies pausing their plans for an IPO. This comes amid the volatility of the capital markets.

Other IPO contenders, including ServiceTitan, StockX, Instacart, and Cohesity, have stopped updating their filings. As noted by The Information, Reddit is still far from profitability but still plans to go public.

The company achieved a $10 billion valuation in an August 2021 private fundraising round, as noted in another article by Reuters. Jay Ritter, a finance professor at the University of Florida, shared their hopes about Reddit's price.

Some of Reddit's top investors include Andreessen Horowitz, Sequoia Capital, and Tencent Holdings. Aside from these firms, other popular investors include Snoop Dogg.

So far, Reddit did not disclose as to how many shares should be offered or the price range of the shares upon IPO.

Ritter: "(Reddit) is hoping to be priced at a substantial premium to the typical tech stock IPO this year... As with many money-losing companies going public, the rapid growth rate of revenue offers the potential to have high future profits, justifying a high multiple,"

Citadel's Ken Griffin previously addressed Redditors indirectly responding to how GME trading was halted in 2021. In 2022, Griffin earned $16 billion, towering over the second-largest hedge fund, which only earned $8.2 billion that year.

Griffin: "Redditors, thank you so much for helping create the best pipeline we've ever had."

Notably, Ken Griffin has been known as a major donor to politicians, giving over a hundred million in PAC donations. The full list of contributions can be seen here.

See flow at unusualwhales.com/flow.

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Resources:

Reuters

The Information

Reuters