Reddit finally filed for its Initial Public Offering (IPO) on the New York Stock Exchange which follows the company's rumored plans of going public soon. After many years of rumors and reports, the first step towards going public was taken by Reddit, now planning to have the 'RDDT' ticker symbol on the stock exchange as its monicker in the market.
Alongside this, Reddit also announced a massive invitation for longtime users and investors to buy shares from the company, subject to eligibility set by the company.
Reddit Files for IPO, Soon Going Public
(Photo : Mario Tama/Getty Images)
Reddit announced that it already filed for its IPO earlier today, centering on its initial offers of Class A common stock to its investors and several users. Initial reports claim that Reddit would be valued at around $15 billion once it goes public, but as of the time of this writing, it is not yet determined by the company.
Moreover, it is unknown how many Reddit shares will be available in the market, with the company stating that those figures will follow shortly.
Based on Reddit's S-1 Filing with the United States Securities and Exchange Commission (SEC), longtime users of the platform are eligible to buy shares once it goes public.
Reddit CEO Steve Huffman talked more about Reddit being a public company, inviting users to be part of the company's ownership.
Our users have a deep sense of ownership over the communities they create on Reddit. This sense of ownership often extends to all of Reddit... We want this sense of ownership to be reflected in real ownership-for our users to be our owners. Becoming a public company makes this possible. With this in mind, we are excited to invite the users and moderators who have contributed to Reddit to buy shares in our IPO, alongside our investors.
Reddit and Their Plans for IPO
The massive changes on Reddit which was seen and felt last year were one of the sources for speculations behind the company going public, with this new API policy looking to change the access to the renowned platform. Before all of these changes, Reddit was best known as an open-source platform, but more importantly, offers its API to developers for free.
However, after it charged developers for the API access, many dropped out from creating the renowned apps, also prompting a massive blackout from users and moderators to upstage the changes.
Back in November, there were also massive talks behind the ramping plans of the company to go public, speaking with their investors regarding a potential IPO soon. Moreover, the company's recent rebrand was also speculated to be another move towards its public outing, changing the significant design of Reddit, its mascot, fonts, and more to a more "global" look.
All of these factors played into the latest update from Reddit now, with the IPO filing signifying a massive change for the company moving forward, also inviting its users to be partial owners of the company once it goes public.
