Social media platform Reddit, whose message boards grew to become central to meme inventory buying and selling frenzy in 2021, is tapping Wall Road banks Morgan Stanley and Goldman Sachs Group for its preliminary public providing, a supply aware of the matter advised Reuters on Friday.
Reddit had confidentially filed for an IPO in December and is aiming for a valuation of over $15 billion (roughly Rs. 1,11,436 crore) on the time of its flotation. It was valued at $10 billion (roughly Rs. 74,231 crore) in a personal fundraising spherical led by Constancy Administration in August.
A second supply aware of the matter stated JPMorgan Chase can be one of many high underwriters on the deal.
Goldman Sachs and Reddit didn’t instantly reply to Reuters requests for remark. Morgan Stanley and JPMorgan Chase declined to remark.
Reddit, which was based in 2005 by Steve Huffman and Alexis Ohanian, has greater than 50 million every day lively customers and over 100,000 communities.
Its message boards, particularly its WallStreetBets thread, have been on the coronary heart of a pitched battle between small-time merchants and large hedge funds and had helped drive huge features in extremely shorted shares of corporations reminiscent of GameStop and AMC, whereas popularising the time period meme shares.
Globally, IPOs have raised a report $594 billion (roughly Rs. 44,10,667 crore) in 2021, driving the coattails of inventory market rallies with know-how and healthcare being the most important sectors driving IPO volumes.
There have been 426 know-how IPOs final yr and 332 healthcare-related offers, collectively accounting for nearly 42 % of IPO proceeds raised by corporations globally, in accordance with Refinitiv.
Bloomberg News first reported the information.
© Thomson Reuters 2021
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