Reddit, the massive online community platform, has filed for a listing with the SEC or SEC Securities and Exchange Commission in the United States. This move aims to prepare the IPO of the company to enter the stock market. This development is significant as Reddit will be the first major technology company to go public in the US stock market this year. Moreover, it will also be the first social media company to go public in several years, with the last one being Pinterest in 2019.
Reddit will offer company stock for trading on the New York Stock Exchange with the ticker symbol RDDT. The company’s stocks are divided into classes A-B-C, all of which hold equal ownership rights in the company except for voting power. Class A shares have 1 vote per share, Class B has 10 votes per share with the ability to convert to Class A, and Class C has no voting power. The company has yet to announce the stock price, the number of shares offered for sale, and the business valuation from the IPO.
Established in 2005 by Alexis Ohanian and Steve Huffman, Reddit was initially sold as part of the media group Condé Nast in 2006 before becoming an independent company in 2011. It has raised funding from investors totaling over $1.3 billion, with the last reported business valuation being around $10 billion.
Reddit’s financial performance in 2023 saw revenue of $804 million, a 20% increase from 2022. Despite this growth, the company experienced a net loss of $90.8 million. Other interesting statistics include having over 100 thousand communities, 73 million daily active users (DAUs), and 267 million weekly active users (WAUs).
In this IPO, Reddit specifies that its users, known as Redditors, can directly participate in buying IPO shares. Eligibility includes having over 2,000 Karma points and moderators with more than 5,000 activities.
TLDR: Reddit, a large online community platform, filed for an IPO listing with the SEC in the US, making it the first major tech company to do so this year. The company’s stocks will be traded on the NYSE, with unique voting rights for different classes of shares. Despite financial growth, Reddit reported a net loss in 2023. Eligible Redditors with enough Karma points can directly buy IPO shares.
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