Social discussion forum Reddit files confidentially to go public

Social discussion forum Reddit which is gaining immense popularity in India, especially among the young online users, has confidentially filed papers with the US Securities and Exchange Commission (SEC) to go public.

The 16-year-old company which raised $410 million led by Fidelity in August this year valuing it at $10 billion, said in a statement that it has confidentially submitted a draft registration statement with the US SEC relating to the proposed initial public offering (IPO) of its common stock.

"The number of shares to be offered and the price range for the proposed offering have not yet been determined. The initial public offering is expected to occur after the SEC completes its review process, subject to market and other conditions," the company said.

"We are in a quiet period, and for regulatory reasons, we cannot say anything further," it added.

The company's CEO Steve Huffman had told the New York Times that Fidelity's investment would give it more time to decide when and how to go public.

Reddit has raised $1.3 billion in funding to date, according to public information.

Reddit made $100 million in ad revenue for the second quarter of 2021, a nearly 200 per cent increase from the previous year.

The company said earlier this year that it planned to double its staff by the end of 2021 to around 1,400 employees.

Reddit, founded in 2005, had grown to around 52 million daily users as of August, with more than 100,000 active subreddits, reports The Verge.