Reddit seeks several billion valuation in March 2024 IPO, after raising at $10B in 2021.
Reddit Inc. is considering a valuation of at least $5 billion in its initial public offering (IPO), according to people familiar with the matter.
The company is currently estimated to be valued at below $5 billion in the volatile market for shares of private companies.
Reddit is targeting a valuation in the mid-single-digit billions, with the final figure depending on the IPO market's recovery.
The company is considering a possible listing as soon as March.
Private trades of Reddit's unlisted shares have valued the company below $5 billion, with potential buyers on Rainmaker Securities’ platform submitting bids indicating a value of between $4.5 billion and $4.8 billion.
Reddit raised funds in 2021 at a $10 billion valuation, and could potentially have been valued as much as $15 billion in an IPO.
Reddit, founded in 2005, had more than 70 million daily active unique visitors as of October.
The company became an icon of the so-called meme-stock era after a forum on the site, WallStreetBets, jolted the stock market.
The trading frenzy in 2021, driven largely by posts on the site, whipsawed the prices of GameStop Corp. and AMC Entertainment Holdings Inc.