Reddit announced Wednesday that it has confidentially filed paperwork in its first big step toward an initial public offering, making it the latest tech firm to consider a Wall Street debut.
The social media site said that it has not yet determined the number of shares to be offered or their price range. It said that the IPO is expected to occur after the US Securities and Exchange Commission “completes its review process subject to market and other conditions.”
Back in September, Reuters reported — citing sources — that Reddit was looking to hire investment bankers and lawyers for an IPO.
Reddit declined to provide additional comment Wednesday night.
Wall Street saw a massive number of debuts in 2021. In the first nine months of this year, 785 companies have gone public in the United States, compared to 664 for all of 1996 — the dawn of the internet stock mania — and 555 in 2020.
Dating app Bumble, plant-based milk company Oatly and online brokerage giant Robinhood are among the more high-profile “unicorn” companies to go public in 2021.
Reddit, meanwhile, is a highly popular social media site. It even gained notoriety on Wall Street earlier this year because of one of its boards, WallStreetBets.
Users on that board promoted a number of stocks — including GameStop and AMC — in the hope of squeezing short sellers that had been betting against them. Shares in GameStop, the gaming retailer, rocketed about 2,700% in a matter of weeks, in part because it was plugged by enthusiasts on Reddit.
– Paul R. La Monica contributed to this report.
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