Reddit reportedly planning IPO in March

(Sharecast News) - Social media platform Reddit has drawn up plans to launch its initial public offering (IPO) in March, according to a report on Thursday.

Reddit, which filed confidentially for its IPO in December 2021, is planning to make its public filing in late February, launch its roadshow in early March, and complete the IPO by the end of March, the Reuters wire agency reported, citing unnamed sources.

It would be the first IPO of a major social media company since Pinterest in 2019.

The San Francisco-based company, which was valued at about $10bn in a funding round in 2021, is seeking to sell about 10% of its shares in the IPO, the sources added. It will decide on what IPO valuation it will pursue closer to the time of the listing, they added.

Founded in 2005 by web developer Steve Huffman and entrepreneur Alexis Ohanian, Reddit became best known for its niche discussion groups and its users voting "up" or "down" on the content posted by other members.

The company, which generates its revenue primarily through advertising and also offers premium access for $5.99 per month, has yet to turn a profit, Huffman said in a Reddit post last June.

Reddit said last year it would charge companies for access to its application programming interface (API), which is used by technology companies to train large-language models used in artificial intelligence. The move upset some users who rely on third-party apps to access Reddit.