Reddit announces key filing on the path to a proposed public offering [Update]

Reddit is one step closer to proposed public offering as it has just confidentially submitted a draft registration statement on Form S-1 with the Securities and Exchange Commission (SEC). Once the company does get permission for this proposed public offering, anyone will be able to buy the shares of the social media platform.

The filing of these documents with the SEC is one of the key steps for the company to offer shares to the public. Now that the forms have been submitted, the SEC will perform a review. If it approves, then Reddit can begin selling the shares, subject to market and other conditions.

It's still early, so Reddit has not revealed how many shares will be sold on the open market or how much they will cost. The social media firm said it's in a quiet period now and cannot talk anymore about the process for regulatory reasons.

Public offerings are beneficial for companies like Reddit because they provide an opportunity for them to raise capital and expand. After their IPOs, companies can also use their public status to raise capital by buying shares when they believe they're at a low price and selling them when the shares seem to be at a high price.

In Reddit's announcement today, the company refers to the proposed public offering as an initial public offering, but the firm also had its IPO earlier this year. It could refer to a secondary offering, we've reached out to Reddit for clarification.

One negative to going public is that the company is under much more pressure to turn a profit. This could mean we'll see more ads on Reddit or premium features that have to be paid for, or even limitations on free accounts to encourage upgrading to premium features.

Any changes like this could significantly change the user experience over time as the company tries to increase revenues.

Update: Commenters have said that Reddit has previously IPO'd, which is correct, it's unclear right now whether Reddit's announcement has is an old update marked with the wrong date or if the company is planning to issue more stock. Neowin has reached out to Reddit for clarification.