From Subreddits to Wall Street: Reddit's $6.5 Billion IPO Ambitions Revealed

Reddit plans its IPO with a valuation of $6.5 billion, setting a price range between $31 and $34 per share

Reddit, the social media platform, is poised for public trading with a targeted valuation of $6.5 billion. Amidst considerable anticipation, its initial public offering (IPO) has garnered significant attention, surpassing expectations by four to five times. Despite a previous valuation of $10 billion, this current target signifies a reduction. The IPO is priced between $31 and $34 per share.

Reddit chooses NYSE for IPO, discloses cryptocurrency holdings amidst high investor interest

Headquartered in San Francisco, Reddit has selected the New York Stock Exchange for its listing, trading under the ticker RDDT. Notably, its IPO filing reveals holdings in Bitcoin (BTC), Ethereum (ETH), and Polygon (MATIC). This move towards public trading occurs amidst a less inviting IPO market, yet investor enthusiasm remains high.

Reddit aims to raise $748 million in its IPO, despite posting an annual net loss of $90.8 million

While reporting a net income of approximately $18.5 million for Q4 2023, Reddit concluded the year with a net loss of $90.8 million. The IPO aims to raise $748 million, offering over 15.2 million shares of its Class A common stock, alongside 6.7 million shares from selling stockholders.

Reddit breaks tradition, allows employees to sell stocks during IPO, sets aside shares for top users

In a departure from convention, Reddit allows some employees to sell shares during the IPO, contrary to imposing a lock-up period. Reserved shares for top users acknowledge the platform's community value.

IPO volume increases by 10% year-over-year in 2024 amidst a sluggish market

Ownership includes significant shares held by co-founder and CEO Steve Huffman, along with other major shareholders like Advance Publications and Tencent. Despite a subdued IPO market, Reddit's IPO sparks significant interest, amidst a 10% increase in IPO offerings in 2024 compared to the previous year.

Reddit's move into the public market signifies its growth and adaptation to the digital landscape. Strategic decisions aim to capitalize on investor interest. As the IPO date nears, market response will gauge Reddit's position and future prospects.