Reddit Said to Tap Morgan Stanley, Goldman Sachs for IPO

JPMorgan Chase is also said to be one of the top underwriters on the deal.

Reddit Said to Tap Morgan Stanley, Goldman Sachs for IPO

Reddit has more than 50 million daily active users and over 100,000 communities

Highlights
  • Reddit had confidentially filed for an IPO in December
  • It was valued at $10 billion (roughly Rs. 74,231 crore) in August
  • IPOs have raised a record $594 billion (roughly Rs. 44,10,667 crore)
Advertisement

Social media platform Reddit, whose message boards became central to meme stock trading frenzy in 2021, is tapping Wall Street banks Morgan Stanley and Goldman Sachs Group for its initial public offering, a source familiar with the matter told Reuters on Friday.

Reddit had confidentially filed for an IPO in December and is aiming for a valuation of over $15 billion (roughly Rs. 1,11,436 crore) at the time of its flotation. It was valued at $10 billion (roughly Rs. 74,231 crore) in a private fundraising round led by Fidelity Management in August.

A second source familiar with the matter said JPMorgan Chase is also one of the top underwriters on the deal.

Goldman Sachs and Reddit did not immediately respond to Reuters requests for comment. Morgan Stanley and JPMorgan Chase declined to comment.

Reddit, which was founded in 2005 by Steve Huffman and Alexis Ohanian, has more than 50 million daily active users and over 100,000 communities.

Its message boards, especially its WallStreetBets thread, were at the heart of a pitched battle between small-time traders and big hedge funds and had helped drive big gains in highly shorted shares of companies such as GameStop and AMC, while popularising the term meme stocks.

Globally, IPOs have raised a record $594 billion (roughly Rs. 44,10,667 crore) in 2021, riding the coattails of stock market rallies with technology and healthcare being the biggest sectors driving IPO volumes.

There were 426 technology IPOs last year and 332 healthcare-related deals, collectively accounting for almost 42 percent of IPO proceeds raised by companies globally, according to Refinitiv.

Bloomberg News first reported the news.

© Thomson Reuters 2021


Xiaomi India speaks exclusively to Orbital, the Gadgets 360 podcast, on their plans for 2022 and pushing for 120W fast charging with the 11i HyperCharge. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.
Affiliate links may be automatically generated - see our ethics statement for details.
Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.

NSO Group: Polish Leader Admits Country Bought Powerful Israeli Spyware
Share on Facebook Gadgets360 Twitter Share Tweet Snapchat Share Reddit Comment google-newsGoogle News
 
 

Advertisement

Follow Us

Advertisement

© Copyright Red Pixels Ventures Limited 2024. All rights reserved.
Trending Products »
Latest Tech News »