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Jan 7 (Reuters) – Social media platform Reddit Inc, whose message boards grew to become central to meme inventory buying and selling frenzy in 2021, is tapping Wall Road banks Morgan Stanley and Goldman Sachs Group for its preliminary public providing, a supply conversant in the matter advised Reuters on Friday.
Reddit had confidentially filed for an IPO in December and is aiming for a valuation of over $15 billion on the time of its flotation. It was valued at $10 billion in a non-public fundraising spherical led by Constancy Administration in August.
A second supply conversant in the matter stated JPMorgan Chase can be one of many high underwriters on the deal.
Goldman Sachs and Reddit didn’t instantly reply to Reuters requests for remark. Morgan Stanley and JPMorgan Chase declined to remark.
Reddit, which was based in 2005 by Steve Huffman and Alexis Ohanian, has greater than 50 million every day energetic customers and over 100,000 communities.
Its message boards, particularly its WallStreetBets thread, had been on the coronary heart of a pitched battle between small-time merchants and massive hedge funds and had helped drive massive positive aspects in extremely shorted shares of corporations comparable to GameStop and AMC , whereas popularizing the time period meme shares.
Globally, IPOs have raised a document $594 billion in 2021, driving the coattails of inventory market rallies with know-how and healthcare being the most important sectors driving IPO volumes.
There have been 426 know-how IPOs final yr and 332 healthcare-related offers, collectively accounting for nearly 42% of IPO proceeds raised by corporations globally, in response to Refinitiv.
Bloomberg Information first reported the information.
Reporting by Chavi Mehta and Anirban Sen in Bengaluru; Krystal Hu in Toronto; Enhancing by Shailesh Kuber and Arun Koyyur