NYSE President Lynn Martin gives her 2024 predictions on IPOs, mergers and acquisitions, stock valuations and Fed developments.
Reddit has been recommended to seek a valuation of at least $5 billion in a potential initial public offering (IPO) this spring, according to a report from Bloomberg News.
The social media network – which aggregates and rates content and hosts forums for users – has held meetings with potential IPO investors, and advisers have suggested the company should seek a valuation of about $5 billion, it said the Bloomberg report, citing people familiar with the discussions.
Bloomberg found that private trades in unlisted Reddit shares were trading at a value of less than $5 billion – with potential buyers on Rainmaker Securities' platform bidding between $4.5 billion and $4.8 billion. dollars and the Forge Global Holdings database suggests a valuation of $4.8 billion.
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Reddit could file for its IPO in the next few months, about three years after first confidentially disclosing its IPO plan. (Photo illustration by Sheldon Cooper/SOPA Images/LightRocket via Getty Images / Getty Images)
However, the report added that private deals can occur at lower valuations than an IPO because unlisted stocks are mostly illiquid and therefore trade at a discount compared to publicly traded securities.
Reddit plans to launch its IPO in March after contemplating the move for over three years, according to a Portal report citing people familiar with the matter.
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According to a report from Bloomberg News, Reddit could be seeking an IPO valuation in the $5 billion range. (Photo by Ahmet Serdar Eser/Anadolu via Getty Images / Getty Images)
According to the timeline laid out by two of the sources, Reddit plans to make its public filing in late February, begin its roadshow to recruit potential investors in early March and complete its IPO before the end of the month.
The company will decide on the IPO valuation it will pursue closer to the listing date and plans to sell about 10% of its shares in the IPO, Portal reported.
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Reddit is reportedly considering launching its long-awaited IPO in March this year. (Photographer: Michael Nagle/Bloomberg via Getty Images / Getty Images)
Reddit confidentially filed for its IPO in December 2021. A funding round completed this year valued it at about $10 billion.
The U.S. IPO market has been rocked by volatility at times over the past two years, contributing to Reddit's decision to delay its IPO, and the social media company's possible listing would be a key test of the IPO's recovery IPO market.
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Portal reported that its sources warned that Reddit could delay its IPO plans again, as it has done before.
Reddit did not immediately respond to a request for comment and the company declined to comment on its IPO plans in other reports.
Portal contributed to this report.