{"id":25702,"date":"2021-12-16T08:24:20","date_gmt":"2021-12-16T13:24:20","guid":{"rendered":"http:\/\/1.6287908"},"modified":"2021-12-16T08:24:20","modified_gmt":"2021-12-16T13:24:20","slug":"reddit-files-paperwork-to-go-public-in-2022","status":"publish","type":"post","link":"https:\/\/www.cbc.ca\/news\/business\/reddit-ipo-1.6287908?cmp=rss","title":{"rendered":"Reddit files paperwork to go public in 2022"},"content":{"rendered":"
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Reddit Inc., the preferred platform of day traders who pumped up meme stocks like GameStop and AMC to sky-high valuations this year, is going to go public.<\/p>\n

The company announced it has confidentially submitted paperwork with the U.S. Securities and Exchange Commission to go public and sell shares on a U.S. stock exchange next year.<\/p>\n

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In a short statement, the company gave few details of its plans beyond saying it has started the ball rolling on an initial public offering.<\/p>\n

“The number of shares to be offered and the price range for the proposed offering have not yet been determined,” the company said. “We are in a quiet period, and for regulatory reasons, we cannot say anything further.”<\/p>\n

In its last round of funding from private investors, the company was valued at $10 billion US. The company had previously signalled it hoped to obtain a valuation of about $15 billion US before going public.<\/p>\n

Users have pushed rallies in so-called meme stocks<\/h2>\n

While Reddit has long been a popular digital gathering place for users to discuss any number of niche interests, it became a major player in the investment community during the pandemic thanks to a number of influential groups on the platform using their collective power to bid up prices in various shares.<\/p>\n

The biggest such example was the saga of GameStop, the money-losing video game retailer that Redditors briefly pushed to a valuation of more than $17 billion by catching large institutional investors on the wrong side of a trade known as a short squeeze.<\/p>\n

The group in question, WallStreetBets, has since been credited with pushing similar rallies in other so-called meme stocks such as movie chain AMC<\/a>, retailer Bed Bath & Beyond and even BlackBerry<\/a>.<\/p>\n

When word of the company’s IPO plans broke on Thursday, some Redditors joked about potentially pumping the offering when it became available.<\/p>\n

“I’m in. When do we start?” a Reddit user called 9axle said in a post<\/a>.<\/p>\n

Online brokerage Robinhood Markets Inc., whose trading app was at the centre of the meme stock frenzy, had its IPO in July<\/a>.<\/p>\n

Trading from individual investors has soared during the pandemic, with market data suggesting it makes up as much as one fifth of all stock market activity right now.<\/p>\n

Research from Bloomberg Intelligence analyst Larry Tabb says most institutional investors now keep an eye on activity on retail trading message board like Reddit for “clues” about sentiment.<\/p>\n

“Few … attempt to profit from this information, but most professional money managers don’t want to get caught on the wrong end of a retail-investor wave,” Tabb said.<\/p>\n

Site has tens of millions of users<\/h2>\n

Founded in 2005 by Steve Huffman and entrepreneur Alexis Ohanian, Reddit had roughly 52 million daily active users and over 100,000 communities, or “sub-reddits,” as of October last year.<\/p>\n

The San Francisco-based company reported $100 million in advertising revenue in the second quarter, an almost threefold jump from the same period last year.<\/p>\n

Reddit’s investors over the years have included venture capital firm Andreessen Horowitz, funds such as Sequoia Capital and Tencent Holdings, as well as rap superstar Snoop Dogg.<\/p>\n

Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Reddit Inc., the preferred platform of day traders who pumped up meme stocks like GameStop and AMC to sky-high valuations this year, is going to go public. The company announced it has confidentially submitted paperwork...<\/p>\n","protected":false},"author":1,"featured_media":25704,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":[],"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[10],"tags":[331],"_links":{"self":[{"href":"https:\/\/blog.andrewwbradley.ca\/index.php\/wp-json\/wp\/v2\/posts\/25702"}],"collection":[{"href":"https:\/\/blog.andrewwbradley.ca\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.andrewwbradley.ca\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.andrewwbradley.ca\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.andrewwbradley.ca\/index.php\/wp-json\/wp\/v2\/comments?post=25702"}],"version-history":[{"count":0,"href":"https:\/\/blog.andrewwbradley.ca\/index.php\/wp-json\/wp\/v2\/posts\/25702\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.andrewwbradley.ca\/index.php\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/blog.andrewwbradley.ca\/index.php\/wp-json\/wp\/v2\/media?parent=25702"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.andrewwbradley.ca\/index.php\/wp-json\/wp\/v2\/categories?post=25702"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.andrewwbradley.ca\/index.php\/wp-json\/wp\/v2\/tags?post=25702"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}