San Francisco-based special media site Reddit is being urged by would-be investors to price its upcoming initial public offering with a $5 billion valuation in mind.
According to inside sources quoted by Bloomberg, Reddit’s flotation could happen as soon as March this year.
Reddit’s current valuation is in the ballpark of $4.5 billion to $4.8 billion, going by trades being executed over the counter.
Reddit was valued as highly as $10 billion during the 2021 bull run, though this was likely an inflated valuation due to the ‘meme stock’ craze for which Reddit became the virtual meeting ground.
Reddit first announced its intention to list in December 2021, but the depressed IPO market since 2022 put those plans on the back burner.
Capital markets have since emerged from their slump, however, and interest rates are set to decline this year, making for more optimistic fundraising conditions.