A Reddit IPO (initial public offering) plan has been announced by the company, which would allow its shares to be publicly traded …
Reddit has revealed that it is in discussions with the SEC, but is using a confidential process designed to allow it to withhold details until any arrangements have been finalized. The company is merely notifying its intentions, via a three-paragraph statement.
Reddit, Inc. today announced that it has confidentially submitted a draft registration statement on Form S-1 with the Securities and Exchange Commission (the ”SEC”) relating to the proposed initial public offering of its common stock. The number of shares to be offered and the price range for the proposed offering have not yet been determined. The initial public offering is expected to occur after the SEC completes its review process, subject to market and other conditions.
We are in a quiet period, and for regulatory reasons, we cannot say anything further.
This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities. Any offers, solicitations or offers to buy, or any sales of securities will be made in accordance with the registration requirements of the Securities Act of 1933, as amended (“Securities Act”). This announcement is being issued in accordance with Rule 135 under the Securities Act.
CNET explains the reason for the confidential filing.
The approach allows Reddit to go through several rounds of back and forth with the SEC over the wording of its filing in secret, allowing it to present a much cleaner registration when the company formally files to go public. The process also allows Reddit to keep a lid on sensitive company information, such as data about its customers, revenue and users.
As such, we don’t yet know how Reddit will be valuing itself, but its last funding round in August would suggest a valuation of around $10B.
The Reddit iOS app was updated earlier this month with five new real-time features.
Photo: Brett Jordan/Unsplash
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