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Reddit faucets Morgan Stanley, Goldman Sachs for IPO

© Reuters. FILE PHOTO: Reddit app is seen on a smartphone on this illustration taken, July 13, 2021. REUTERS/Dado Ruvic/Illustration/File Picture

(Reuters) -Social media platform Reddit Inc, whose message boards turned central to meme inventory buying and selling frenzy in 2021, is tapping Wall Road banks Morgan Stanley (NYSE:) and Goldman Sachs Group (NYSE:) for its preliminary public providing, a supply aware of 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 aware of the matter stated JPMorgan Chase (NYSE:) 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 each day lively customers and over 100,000 communities.

Its message boards, particularly its WallStreetBets thread, have been on the coronary heart of a pitched battle between small-time merchants and large hedge funds and had helped drive huge beneficial properties in extremely shorted shares of corporations comparable to GameStop (NYSE:) 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 expertise and healthcare being the largest sectors driving IPO volumes.

There have been 426 expertise IPOs final yr and 332 healthcare-related offers, collectively accounting for nearly 42% of IPO proceeds raised by corporations globally, in line with Refinitiv.

Bloomberg Information first reported the information.

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