Reddit social media platform, whose message boards became the focus of meme stock trading in 2021, is tapping Wall Street banks Morgan Stanley and Goldman Sachs Group for their IPO, a source familiar with the matter told Reuters on Friday.
Reddit had confidential filing for an initial public offering in December and is targeting a valuation of over $ 15 billion at the time of going public. It was valued at $ 10 billion (approximately Rs 74,231 billion) in a private fundraising round led by Fidelity Management in August.
A second source familiar with the matter said JPMorgan Chase was also a lead underwriter on the deal.
Goldman Sachs and Reddit did not immediately respond to Reuters’ request for comment. Morgan Stanley and JPMorgan Chase declined to comment.
Reddit was founded in 2005 by Steve Huffman and Alexis Ohanian and has more than 50 million daily active users and over 100,000 communities.
His message boards, particularly his WallStreetBets thread, were at the center of a fierce battle between small traders and large hedge funds and had helped make big profits on heavily short stocks in companies like GameStop and AMC while popularizing the term meme stocks do .
Globally, IPOs raised a record $ 594 billion (approximately Rs 44.10.667 billion) in 2021 and are riding rallies in stock markets, with technology and healthcare being the biggest sectors driving IPO volume.
According to Refinitiv, there were 426 technology IPOs and 332 healthcare deals in the past year, which together account for nearly 42 percent of IPO revenues from companies worldwide.
Bloomberg News first reported the news.
© Thomson Reuters 2021
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