Reddit faucets Morgan Stanley, Goldman Sachs for IPO

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© Reuters. FILE PHOTO: This image, dated July 13, 2021, shows the Reddit app on a smartphone. REUTERS / Dado Ruvic / Illustration / File Photo

(Reuters) – Social media platform Reddit Inc, whose message boards became the focus of meme stock trading in 2021, is betting on Wall Street banks Morgan Stanley (NYSE 🙂 and Goldman Sachs Group (NYSE 🙂 for its IPO, a source familiar with the matter told Reuters on Friday.

Reddit had confidentially filed for an IPO in December and is targeting a valuation of over $ 15 billion by the time of the IPO. It was valued at $ 10 billion in a private fundraising round led by Fidelity Management in August.

A second source familiar with the matter said JPMorgan Chase (NYSE 🙂 was also one of the top underwriters on the deal.

Goldman Sachs and Reddit did not immediately respond to Reuters’ request for comment. Morgan Stanley and JPMorgan Chase declined to comment.

Reddit was founded in 2005 by Steve Huffman and Alexis Ohanian and has more than 50 million daily active users and over 100,000 communities.

His message boards, particularly his WallStreetBets thread, were at the center of a fierce battle between small traders and large hedge funds and had helped make big profits on heavily short stocks of companies like GameStop (NYSE 🙂 and AMC while popularizing them became the term meme shares.

Globally, IPOs grossed a record $ 594 billion in 2021 and helped drive the rallies in stock markets, with technology and healthcare being the largest sectors driving IPO volume.

According to Refinitiv, there were 426 technology IPOs and 332 healthcare deals in the past year, which together account for nearly 42% of the IPO revenues generated by companies worldwide.

Bloomberg News reported the news first.

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