Reddit Plans to Go Public in The Second Half of 2023

Social networking platform Reddit is planning to go public later this year, presumably in the second half, citing people familiar with the subject.

Can the business that started the meme stock rally also be a profitable one? Although some of these businesses still have a strong base of investors, the initial excitement for many meme stocks has now subsided, and many have returned to their prior low valuations.

According to the report, Reddit and other businesses, such as supermarket delivery service Instacart, are keeping their initial public offering documentation current in anticipation of their debuts when market circumstances improve.

Reddit Filed A Confidential IPO Filing in 2021.

Last year, the IPO market had virtually stopped, with several high-profile listings put on hold as a selloff in high-growth tech stocks and market turbulence dampened investor optimism.

Reddit’s message boards were the go-to place for day traders during the meme stock mania, and the firm secretly filed for an initial public offering with the U.S. securities regulator in December 2021.

According to a report by The Information, Reddit will try to list in late 2023, assuming that market circumstances stabilise. It’s also possible that they’re simply keeping their paperwork current to make things simpler when they do decide to list, whether that happens this year or not.

What Do Reddit Users Think of The IPO for Reddit?

The major issue seems to be that Reddit will need to start making more money as a publicly traded business to appease shareholders, which could lead to users seeing more advertising and changes to the experience.

Reddit was seeking a $15 billion valuation when it submitted its confidential IPO paperwork, according to a popular publication, even though the business went on to receive $700 million in financing in 2021, giving it a worth of more than $10 billion.

It will be challenging to accomplish it today. Reddit and other IT stocks have lost popularity as well, and while they are making a recovery this year, it may not be enough to attract investors and raise Reddit’s price.