Initial public offerings or IPOs are known as a great way for investors to make a big profit in a relatively short time. On average, they can bring investors 40% returns in the first 3 months. Once the initial funding stages are out of the way, IPOs can be a great way for companies to gain exposure to the open market, attract more capital and improve liquidity, and help a company grow to new heights. If you like forums, memes and talking (very likely arguing) with others online, you might be wondering, “is Reddit publicly traded?” or “when is Reddit going public?” as you might be interested in investing in this discussion board of all discussion boards. Read on to find out about Reddit stock IPO and all the important information about Reddit IPO 2022.
One of the most interesting places to interact on any subject, from psychology and self-help communities to politics, games, memes, and hilarious videos of animals like AnimalsBeingConfused, Reddit has it all. In fact, Reddit is a key social network for retail investors to exchange advice and ideas. The subreddit WallStreetBets was responsible for launching the meme popularity of GameStop, AMC and other stocks in January 2021 in an attempt to stick it to the large hedge funds that tried to profit from the slowly falling prices.
The company was founded in 2005 by Steve Huffman and Alexis Ohanian, two roommates studying at the University of Virginia.
In 2006, the site was acquired by Condé Nast Publications, a major US media company. In 2011, Reddit became independent as part of Condé Nast’s parent company, Advance Publications. Several funding rounds later, most recently after a $700 million round led by Fidelity in August 2021, Reddit’s valuation rose to over $10 billion. The company filed for an IPO in December 2021, aiming for a valuation of over $15 billion.
Around 42-50% of Reddit’s user base comes from the US, 8% from the UK and 5-8% from Canada.
When companies decide to go public, they either do it directly or by merging with a special acquisition company (SPAC), a company created specifically for the purpose of helping private companies go public.
The Reddit IPO filing was confidential, so we are yet to find out more details about the way they are planning to launch. There is some speculation about this going round on Reddit itself, on the r/SPAC sub. The company’s CEO Steve Huffman is on the Board of Vy Global Growth (VYGG), and COO Jen Wong is on the board of a SPAC recently formed by Group Nine. But we are yet to see how the listing will happen. SPACs let companies go public faster and cheaper but may have some limitations too, so Reddit’s management may still decide to launch a traditional IPO.
Read on to find out about Reddit IPO date and price and other key info.
Reddit Public Listing Key Data and IPO Date
Reddit IPO Date: Q1 2022 (TBA)
Exchange: Nasdaq (TBC)
IPO stock price: N/A
Valuation at IPO: $10-15 billion (estimated)
Market cap: N/A
CEO: Steve Huffman
Category: Social Media Stocks
Listing method: TBA
At the beginning of 2022, Reddit was expected to go public in March, but it’s likely to be postponed because of the conflict in Ukraine. The Reddit IPO price and other details like the stock symbol etc. are yet to be announced. It is customary for tech and social media companies to launch their IPO on Nasdaq, but if the company does decide to go public through Vy Global Growth (VYGG), the starting stock price will be at around $10 and Reddit will be listed on the NYSE. Hopefully, we’ll learn more about their IPO date and information about the IPO process very soon.
Steve Huffman’s net worth is estimated at $10 million, which came from the sale of Reddit for a reported $10-20 million. Co-founder Alexis Ohanian, who owns stakes in a bunch of other businesses, has an estimated net worth of $70 million thanks to several successful investments into companies like Coinbase IPO, Opendoor IPO and Instacart IPO through Initialized Capital, a venture capital firm he co-founded in 2016.
So What About Investing Now?
Reddit is definitely very niche as much as it is valuable to its community, but it can hardly compete with the major social networks such as Facebook, Instagram and YouTube, although perhaps it doesn’t need to.
The company has never recorded a profit, which is fine for companies that are growing but it does make its money-making prospects uncertain because at the end of the day it’s just a super-duper forum.
Once famous for being a platform for free speech and exchange of ideas, Reddit got caught up in multiple controversies around censorship, most notably when it blocked the subreddit r/The_Donald because many of its users were Trump supporters.
So let’s hope that this IPO is a good move that will help Reddit do more of what it’s good for and less of the fact-checking and mind control that has become so trendy in recent years. It’s still a good idea to keep looking at the news and any new announcements about Reddit going public.
Check out our IPO section to look at other scheduled IPOs. If you want to find companies that match your interests, investment goals and portfolio, try Gainy for some great IPO investment ideas, as well as established blue-chip companies and a variety of other assets.
When is the Reddit IPO date?
The Reddit stock IPO date was expected to come in Q1 2022, but this is likely to be postponed due to the military conflict in Ukraine and the resulting dip in the stock market.
Is Reddit a public company?
No, Reddit is yet to go public so it remains a private company for now.