Reddit taps Morgan Stanley, Goldman Sachs for IPO

reddit
This picture, taken on July 13, 2021, shows the Reddit app on a smartphone. REUTERS / Dado Ruvic / Illustration / File photo

The social media platform Reddit Inc, whose message boards became the center of stock trading obsession in 2021, relied on Wall Street banks Morgan Stanley (MS.N) and Goldman Sachs Group (GS.N) for its initial public offering, a source said. An acquaintance of the matter told Reuters on Friday.

Reddit filed for IPO confidentially in December and aims to raise more than $ 15 billion at the time of listing. It was valued at $ 10 billion in Fidelity Management-led private fundraising in August.

Another source familiar with the matter said that JPMorgan Chase (JPM.N) is also one of the top underwriters in the deal.

Goldman Sachs and Reddit did not immediately respond to Reuters requests for comment. Morgan Stanley and JP Morgan Chase declined to comment. Reddit, founded in 2005 by Steve Huffman and Alexis Ohanian, has over 50 million daily active users and over 100,000 communities.

Its message boards, particularly the Wall StreetBates thread, have been at the center of a battle between small traders and large hedge funds, and have helped gain large gains in very short stocks from companies such as Gamestop (GME. N) and AMC. ) .N), while Memo Stokes popularized the word.

Globally, the IPO raised a record $ 594 billion following the stock rally in 2021, with technology and healthcare being the largest sectors driving the IPO volume on the stock exchange.

Last year there were 426 technology IPOs and 332 healthcare-related deals, accounting for about 42% of IPO revenue collected by companies globally, according to Refinitiv.

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