According to a News report, Reddit has been encouraged to aim for a valuation of at least $5 billion in the event of an IPO this spring.

According to a report citing people familiar with the discussions, the social media network, which hosts user forums and aggregates and rates content, has been meeting with potential IPO investors. Advisors have recommended that the company aim for a valuation of about $5 billion.

Reddit’s unlisted shares have been traded privately for less than $5 billion; potential purchasers have placed offers on Rainmaker Securities’ platform that vary from $4.5 billion to $4.8 billion, while Forge Global Holdings’ database shows a $4.8 billion valuation.

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The research did note, nevertheless, that because unlisted shares are typically less liquid than those that are listed on public markets, private transactions may take place at lower valuations than initial public offerings (IPOs).

According to a Reuters story citing people familiar with the matter, Reddit is scheduled to conduct its initial public offering (IPO) in March, having contemplated the step for almost three years.

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Two of the sources provided a timeline that shows Reddit intends to file for public company formation in late February, start a roadshow in early March to solicit investment, and finish the IPO by the end of the month.

According to Reuters, the company plans to sell roughly 10% of its shares in the IPO and will decide on the IPO pricing closer to the time of the listing.

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In December 2021, Reddit quietly filed for an initial public offering. After it finished that year’s investment round, its estimated value was $10 billion.

Reddit’s decision to postpone its IPO was influenced by the volatility that has occasionally shaken the U.S. IPO market over the past two years. The social media company’s possible listing would be a significant test of the IPO market’s recovery.