Saturday, June 15

Reddit weighing IPO as soon as first quarter of 2024

Reddit is again holding talks with potential investors for an initial public offering (IPO) for the social media company, according to people familiar with the matter, as hopefuls prepare for a long-awaited reopening of the market for new listings.

The San Francisco-based firm, whose users helped fuel the meme stock frenzy that made 2021 a banner year for equities, is weighing an IPO as soon as in the first quarter, the people said. Reddit was working with Morgan Stanley and Goldman Sachs on the listing, Bloomberg News reported in 2022, and was considering a valuation of as much as US$15 billion (S$20 billion).

Companies planning first-time share sales in the United States have been stymied for months by volatile markets and a relatively weak showing for four closely watched debuts in September and October, which all but slammed the door on big-ticket IPOs in 2023.

With this year’s total US volume set to just barely surpass 2022 – the worst year in over a decade for IPOs in the country, according to data compiled by Bloomberg – hopefuls weighing sizable listings and their advisers are largely turning their gaze to 2024.

Rubrik, a Microsoft-backed cloud and data security start-up, is also considering holding its IPO as soon as in the first quarter, people familiar with the deliberations said.

Kim Kardashian’s Skims underwear label, valued this summer at US$4 billion, is discussing strategic options including an IPO that could come as soon as 2024, people with knowledge of the matter said.

Details of Reddit, Rubrik and Skims’s respective plans could change and there’s no guarantee the companies will move ahead with listings, the people said. Representatives for Skims, Reddit and Rubrik declined to comment.

Several other firms have been considering sizable IPOs as soon as 2023, Bloomberg News has reported, though with only a few weeks of trading left in the year, that window is rapidly closing.

Chinese electric vehicle maker Zeekr Intelligent Technology Holding filed for its listing in November. The Zhejiang Geely Holding Group-backed firm updated its financial figures on Nov 24, showing US$4.9 billion in revenue in the nine months to Sept 30, almost doubling the figure from the same period in 2022, according to Bloomberg calculations.

Meanwhile, EQT AB-backed Waystar Holding, which filed in November, is considering moving forward with its IPO while monitoring market conditions. – Bloomberg

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