Reddit, a social media platform, has stated that it has begun the operation of selling its stock on the stock exchange. It did not say how many shares it planned to sell or at what price in a secret filing.
The company said in August that it had raised $700 million (£528 million) in new capital, valuing it at more than $10 billion. Earlier this year, Reddit was at the center of the “meme stock” phenomenon.
The initial public offering is planned to take place when the SEC completes its review process, subject to market and other conditions, according to a filing with the US Securities and Exchange Commission.
Investors flocked to the San Francisco-based firm’s message board earlier this year for advice on trading stocks like US video game retailer GameStop and the AMC movie theater chain, which are known as “meme stocks,” or equities that gain popularity through sites like Reddit.
Steve Huffman, Reddit’s co-founder, and CEO told the New York Times in August that the company was “still intending ongoing public” but didn’t have a set date, adding, “All good firms should go public when they can.”
According to the Reuters newswire, the corporation was valued at more than $15 billion the next month. As of August this year, Reddit, which was launched in 2005, has over 52 million daily members.
The company announced earlier this year that by the end of 2021, it wanted to quadruple its headcount to around 1,400 people.
Tencent, a Chinese technology company, Fidelity Investments, and Sequoia Capital, a venture capital firm, are among Reddit’s main financial backers.