After nearly three years since its initial filing in December 2021, Reddit is set to embark on its long-anticipated journey to launch its initial public offering (IPO) in the month of March this year. The social media platform is meticulously planning the crucial steps in the upcoming months, with the overarching goal of completing the IPO process by the end of February. This strategic roadmap involves initiating the roadshow in early March, ultimately culminating in the IPO by the close of that month.

As Reddit approaches this significant milestone, the company’s IPO valuation remains a dynamic factor to be determined with careful consideration of prevailing market conditions closer to the listing date. The platform aims to offer approximately 10% of its shares during the IPO, a move outlined in its plans but subject to potential delays, as highlighted in a Reuters report.

In a funding round held in 2021, Reddit, headquartered in San Francisco, secured a valuation of around $10 billion. This valuation surge followed a substantial Series F funding round, where Reddit successfully raised $410 million, spearheaded by Fidelity. Following this financial boost, Reddit took a pivotal step by submitting its draft registration for IPO with the Securities and Exchange Commission (SEC), signaling its intent to go public.

Despite its valuation success, Reddit’s revenue landscape primarily hinges on advertising sales. The company had set an ambitious target to surpass $1 billion in ad revenue by 2023, according to a report by The Information. However, it fell short of this lofty goal, shedding light on the challenges and dynamics within the competitive social media and advertising landscape.

If Reddit successfully executes its IPO plans this year, it will mark a significant moment in its corporate trajectory. Notably, it would become the second social media platform to go public since Pinterest’s IPO in 2019, further shaping the narrative of social media companies navigating the public markets.