Wall Street bets on Reddit: Chat site aims for £11bn market cap as it unveils plans to list on the US stock market
Reddit, whose forums helped spark the ‘meme stock’ trading frenzy earlier this year, has unveiled plans to list on the US stock market.
The social media company has filed confidential paperwork for a float with US regulators. However, it said the price and size of the float has ‘not yet been determined’.
The company was valued at £7.5billion in a private fund-raising in August and is reportedly aiming for a market cap of over £11billion when it eventually lists, according to Reuters.
Reddit has filed confidential paperwork for a float with US regulators. However, it said the price and size of the float has ‘not yet been determined’
San Francisco-based Reddit was launched in 2005 and as of January had around 52m active daily users and over 100,000 communities, known as ‘subreddits’.
But this is well below the numbers seen from other social networks, with Facebook pulling in nearly 2bn daily active users.
Reddit’s message boards were at the forefront of a battle between several financial institutions and thousands of small traders earlier this year when retail investors attempted to drive up the share prices of companies that Wall Street financiers were betting against.
US computer game retailer Gamestop became the first target of the small trader army back in January.
During a particularly frantic week, the company’s stock price shot up 135 per cent in a single day before crashing 44 per cent the next day only to rebound 68 per cent the day after.