Reddit Ready to Take the Plunge: Class of 2024 IPO Candidates Dive In!
According to sources, Reddit Inc. is once again in discussions with potential investors regarding an initial public offering (IPO) for the social media company. This comes as the market eagerly anticipates the reopening for new listings. The San Francisco-based firm, known for its role in the meme-stock frenzy that boosted equity markets in 2021, is considering an IPO as early as the first quarter of this year. Reddit had previously partnered with Morgan Stanley and Goldman Sachs Group Inc. for the listing, with a potential valuation of up to $15 billion.
The companies, which are planning to sell shares in the U.S. for the first time, have been reeling from months of market volatility and relatively weak performance during four closely watched debut events in September and October, which all but slammed the door on a big IPO in 2023.
Total U.S. volumes this year are expected to barely exceed 2022, the worst year for IPOs in more than a decade according to data compiled by Bloomberg, so hopes for major IPOs and their advisers are largely turning their sights to 2024.
Internet media IPOs have also dried up. The last offering above $100 million was in March 2021, according to data compiled by Bloomberg, when Zhihu Inc., a Chinese online Q&A service, listed in New York. The stock has since fallen 89 percent.
Rubrik Inc., a cloud and security startup backed by Microsoft Corp., is also considering an initial public offering as soon as the first quarter, people familiar with the discussions said.
Kim Kardashian’s Skims underwear brand, valued at $4 billion this summer, is discussing strategic options, including an IPO that could come as soon as next year, people with knowledge of the matter said, asking not to be identified because the information is not public.
“Skims deserves to be a public company – when the time is right,” CEO Jens Grede told Bloomberg News in an interview in June.
Details of Reddit’s, Rubrik’s and Skims’ plans could change, and there’s no guarantee the companies will move forward with listings, the people said. Representatives for Skims, Reddit and Rubrik declined to comment.
Fast-fashion retailer Shein, which was founded in China but is now headquartered in Singapore, has filed a confidential filing with U.S. regulators for an initial public offering that could happen next year, Bloomberg News reported. Shein declined to comment.
Several other companies have considered major IPOs as early as 2023, Bloomberg News has reported, though after just a few weeks of trading into the year, that window is closing fast.
Chinese electric vehicle manufacturer Zeekr Intelligent Technology Holding Ltd. filed for listing this month. Backed by Zhejiang Geely Holding Group, the company updated its financial figures on Friday, reporting revenue of $4.9 billion in the nine months to Sept. 30, nearly double the same period last year, according to Bloomberg calculations.
EQT AB-backed Waystar Holding Corp., which filed in November, is considering the progress of its IPO and monitoring market conditions, Bloomberg News reported.
