Reddit is in discussions with potential investors regarding an upcoming initial public offering (IPO), signaling a potential resurgence in the market for new listings. The San Francisco-based social media company, known for its influential user base in the meme-stock frenzy of 2021, is contemplating an IPO as early as the first quarter. Reddit had previously collaborated with Morgan Stanley and Goldman Sachs on the listing, exploring a valuation of up to $15 billion, as reported last year.

The US IPO landscape has faced challenges in recent months due to market volatility and lackluster performances of notable debuts in September and October. These factors have contributed to a cautious approach among companies planning first-time share sales, closing the door on significant IPOs for much of 2023. Given the subdued IPO activity, companies and their advisors are now looking toward 2024 for a more favorable environment, with the total US IPO volume for the year expected to only marginally surpass 2022, which was deemed the worst year for IPOs in over a decade, according to Bloomberg data.