Reddit may decide to go public in early 2024
What's the story
Reddit, the United States (US)-based social media giant, is in talks with potential investors for an initial public offering (IPO) as early as the first quarter (Q1) of 2024, Bloomberg has reported.
The company, known for its users' involvement in the 2021 meme-stock craze, is considering a valuation of up to $15 billion.
Previously, Bloomberg had reported that Reddit was working with Goldman Sachs Group and Morgan Stanley on the listing.
Details
Market conditions affecting IPO plans
The US market has been challenging for companies planning their first-time share sales.
Volatile markets and weak performances of four major debuts in September and October effectively shut down big-ticket IPOs in 2023.
As a result, this year's total US volume is barely expected to surpass that of 2022, which was the worst year for IPOs in over a decade.
Companies and their advisers are now focusing on potential listings in 2024.
What Next?
Other companies eyeing 2024 IPOs
Rubrik Inc., a cloud and data security start-up backed by Microsoft, is also considering holding its IPO as early as the first quarter of 2024.
American media personality Kim Kardashian's underwear label Skims and Singapore-headquartered fast-fashion retailer Shein are also planning to proceed with listings next year.
However, the plans could change, and there is no guarantee that they will proceed with the same.
Representatives for Reddit, Skims, Rubrik, and Shein declined to comment, reported Bloomberg.