Reddit, a popular social media platform, has been planning to launch its initial public offering (IPO) in March for over three years, according to sources familiar with the matter. This would be the first major social media company IPO since Pinterest in 2019. The move comes amidst fierce competition for advertising dollars from rivals like TikTok and Facebook.

The IPO would also test investor loyalty, as many Reddit users have helped fuel dozens of “meme” stock rallies in recent years, including those of GameStop and AMC Entertainment Holdings.

In December 2021, Reddit filed confidentially for its IPO and is set to make its public filing in late February, with a roadshow to follow in early March, and the IPO to be completed by the end of March.

The San Francisco-based company, valued at around $10 billion in a 2021 funding round, plans to sell about 10% of its shares in the IPO, with the final IPO valuation to be determined closer to the time of the listing. The sources noted that Reddit’s IPO plans could be delayed, as has happened in the past, and requested anonymity in discussing confidential matters.

Reddit, founded in 2005 by Steve Huffman and Alexis Ohanian, is known for its niche discussion groups where users can vote “up” or “down” on content posted by other members.

The company generates most of its revenue through advertising, while also offering premium access for $5.99 per month. Despite this, it has yet to turn a profit, as confirmed by Huffman in a Reddit post last June.

Previously, the organization has credited its financial losses to its investment in the platform, as well as the fact that its users tend to interact less with advertising on the site compared to other social media channels.

The company refrained from initiating its IPO until it approached a state of profitability, and the intermittently volatile market conditions that affected the IPO market for the past two years also played a role in the postponement of its plans.