Reddit is aiming for a valuation of up to $6.4 billion in its upcoming US initial public offering (IPO), the social media site announced on Monday, as it approaches one of the most anticipated stock market debuts in recent years. The IPO, a crucial litmus test for investors’ appetite for fresh listings, will take place more than two years after the company began preparing to go public. So far this year, the IPO market has recovered unevenly.
Reddit is aiming for a valuation of up to $6.4 billion in its upcoming US initial public offering (IPO), the social media site announced on Monday, as it approaches one of the most anticipated stock market debuts in recent years.
The company, along with some of its existing investors, intends to raise up to $748 million by selling around 22 million shares at prices ranging from $31 to $34.
The IPO, a crucial litmus test for investors’ appetite for fresh listings, will take place more than two years after the company began preparing to go public. So far this year, the IPO market has recovered unevenly.
The desired valuation, on a fully diluted basis, is less than the $10 billion Reddit was valued at after a 2021 financing round.
Reddit, which debuted in 2005, quickly became one of the most important aspects of social media. Its unique logo, which depicts an extraterrestrial on an orange background, is one of the most recognizable emblems on the internet.
Its 100,000 online forums, known as “subreddits,” enable discussions on themes ranging from “the sublime to the ridiculous, the trivial to the existential, the comic to the serious,” according to co-founder Steve Huffman.
Huffman turned to one of the subreddits for help quitting drinking, he wrote in his letter. Former US President Barack Obama also conducted a “AMA” (“ask me anything”) chat with the site’s users in 2012.
The company’s influential forums are best known for the “meme-stock” story of 2021, when a group of retail investors banded together on Reddit’s “wallstreetbets” forum to purchase shares of heavily shorted businesses like as video game retailer GameStop.
Morgan Stanley, Goldman Sachs, J.P. Morgan, and Bank of America Securities are the main underwriters for this offering. Reddit plans to float on the New York Stock Exchange under the symbol “RDDT.”
