Is Reddit going to IPO?
On Dec 16, 2021 – Reddit has confidentially filed for an initial public offering with U.S. securities regulators. Reddit has not yet determined the price range and number of shares for sale. The timing of the IPO will be known after the SEC completes its vetting process.
Reddit raised $410 million in August 2021 with a valuation of $10 billion. In March 2021, Drew Vollero, who had previously worked on Snap's IPO, became the company's CFO - a sign that Reddit was preparing for a public offering.
Reddit was founded in 2005 by Huffman and entrepreneur Alexis Ohanian. It became known for its niche discussion groups, lagging the popularity of other major social media platforms such as Facebook and Twitter. Reddit saw explosive growth during the pandemic as retail investors occupied thematic subs for “meme stocks" and cryptocurrency trading.
Detailed instructions how to participate in Reddit (pre-IPO, offering price) see below👇
What is an IPO and how it works
IPO is a process of offering shares of a private corporation to the public in a new stock issuance. Why go public? The primary benefit of going public is easier access to capital.
To go public, a company must have a track record of growth and other favorable results and hire an investment bank to come in and underwrite the IPO. The underwriters also performed due diligence and verified financial information and business model.
Once the paperwork done, the company sells the stock to institutional investors. When the initial block of shares has been sold, the company with underwriters' help sets an initial price and date for the stock to begin trading on a stock exchange.
Company Profile and Financial Indicators before Reddit IPO
Reddit was valued at $10 billion in a private fundraising round in August 2021. By the time the IPO takes place early next year, Reddit hopes it will be valued at more than $15 billion, one of the sources said.
Reddit had roughly 52 million daily active users and over 100,000 communities, or "sub-reddits," as of October last year. Huffman has said it gained millions of new users earlier this year during the height of the trading frenzy, but more recent user figures have not yet been released.
The company makes most of its money through advertising. For the second quarter of 2021, the corporation had a profit of $100 million. This is nearly three times higher than the same period the previous year. The profit for the entire year of 2020 was $141,8 million. In total, the company was able to raise $1,3 billion in capital over the course of seven rounds. Reddit's biggest investors include Fidelity Investments, Andreessen Horowitz, Sequoia Capital and Tencent Holdings
How to Buy Reddit Stocks Before the IPO (Offering Price)
In the past, IPOs as highly profitable investments were available only to the privileged customers of the leading brokerage firms and it was challenging for retail investors to gain access. You couldn't buy shares paying the price set by the company and you had to wait until the shares actually start trading on the public stock market at whatever stock price supply and demand allows.
Technologies and marketplaces changed the rules of the game, now regular investors can get pre-IPO shares. To participate in Reddit IPO you need to use an IPO investing app like Freedom Finance (NASDAQ: FRHC), TD Ameritrade or Fidelity. They give its customers access to IPOs and secondary offerings through their existing brokerage account. Also you can buy Reddit shares when the company goes public via a commission-free trading app like eToro or Webull.
🚨 Detailed Instructions How to Participate in the Reddit IPO before public trading:
Below we share the instruction how to participate in the approaching Reddit IPO using Freedom Finance (Freedom24 platform). This marketplace is chosen as an example because Reddit is already listed there. This marketplace is chosen as an example because almost all high-profile IPOs are traded via this platform (as Robinhood Markets Inc, whose trading app also became popular with retail investors)
🎁 A special offer is available for this IPO.
*** Freedom Finance services are NOT available to US citizens and residents.
- Apply for a Freedom Finance account — you need to prepare your identity document and a document confirming the address of residence (utility bill). The verification process is very fast, it will take 2 minutes to create your account.
- Deposit your account — to participate in an IPO, your account must have available funds in the amount you send IPO application for.
- 💡 Tip: It's recommended to deposit your account in advance. Often the exact IPO date is undefined until the last day. You may have a short notice for participation and account deposits also takes time for processing. Also, sometimes Freedom sends last-minute IPO offer when you have 2 hours to participate.
- Submit a request to participate in the IPO — when applications are open select Reddit and click Participate in the IPO > input the amount you want to invest > Send your application. Note: Before the book closing, a request can be withdrawn. At the time of the book closing, 1 day before the start of the exchange trading, the specified amount will be blocked on the account.
- Wait for allocation — The actual number of stocks purchased during an IPO depends on supply and demand. The higher underwriter reserves the right to partial execution of collective applications. So if the demand is high you may get less than you applied for. Of course, you will only pay for the shares purchased. The rest of the funds will be returned to your account.
- Start of trading — With the beginning of the public trading on the stock exchange, the purchased shares will appear on the account and a lock-up period will start — a 93-day period of prohibition on sale. You can’t sell stocks, but you can track their current value and growth indicators in your personal member area and a trading terminal.
- Closing your trade — At the end of the 93 days lock-up period, you will be able to manage your stocks at your discretion — leave in the portfolio or sell and withdraw money or transfer the stocks to another depository/ broker in your name. This can be done in your account by clicking the ‘Sell’ button next to the name of the security. In this case, a commission of 0.5% of the amount of the sale transaction is charged.
Is investing in IPOs profitable?
Not always. The average return at the end of the lock-up period is 72%, past IPOs data.
When is the Reddit IPO date?
Early 2022
Reddit's IPO date is not defined yet. We will update when the exact Reddit date IPO is known – if you want to get notified please subscribe for updates here.
What is Reddit IPO price range?
Reddit IPO price range is not defined yet. We will update when the Reddit IPO offering price is known – if you want to get notified please subscribe for updates here.
How to Invest in Reddit after the IPO date (opening price)?
After the IPO you can buy Reddit stocks via Freedom24. Or if you're from the US use a commission-free trading app like eToro on the first trading day.
In what currency Reddit IPO and post-IPO shares will be traded?
The Reddit IPO and stock trading currency will be USD.
If you have funds in another currency the cheapest way to convert your currency is to use the mid-market rate (that’s the one you’ll find on Google) which can be done via a fintech service like Wise. Banks may add hidden markups to their exchange rates - charging you more without your knowledge. And if they have a fee, they charge you twice. Wise never hides fees in the exchange rate.
What is the Reddit (stock symbol)
The stock ticker for Reddit will be
Reddit Prospectus
Will be published here when filed.
Airbnbase
Sources used: TechCrunch, Reuters
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