In this picture illustration, the Reddit brand is displayed on a cellular phone and laptop monitor on February 13, 2024 in Los Angeles, California.
Mario Tama | Getty Images
Reddit goals to raise up to $748 million as a part of its upcoming IPO, in which the social media firm is in search of a valuation of about to $6.5 billion.
The firm plans to promote about 22 million shares between a spread of $31 to $34 per share, in accordance to a corporate filing launched Monday.
Reddit has additionally put aside roughly 1.76 million shares for sure customers and moderators, often known as Redditors, who need to take part in the preliminary public providing and have created their person accounts earlier than Jan. 1. These Redditors might be in a position to buy these shares after which promote them when Reddit goes public as they will not be topic to a lock-up period, which generally prevents traders from promoting shares for six months after the IPO.
The firm warned in its S-1 submitting that Redditors who take part in its IPO “could result in increased volatility in the market price” of the corporate’s Class A typical inventory. Other firms which have gone public and allowed sure neighborhood members and others to participate in their IPOs through comparable directed share packages, embrace Doximity, Rivian and Airbnb.
Reddit filed its IPO prospectus in February, and mentioned it deliberate to go public on the New York Stock Exchange and commerce underneath the ticker image “RDDT.”
Investors are intently watching Reddit’s upcoming IPO, which might be this 12 months’s first main tech inventory launch and the primary social media IPO since Pinterest went public in 2019.
In 2021, Reddit filed a confidential draft of its public providing prospectus with the Securities and Exchange Commission. During that very same 12 months, Reddit raised $1.three billion in a funding spherical and had a non-public market valuation of $10 billion, in accordance to the deal-tracking service PitchBook.
Reddit’s annual gross sales in 2023 had been $804 million, which was a 20% year-over-year enhance from $666.7 million, in accordance to the corporate’s S-1 submitting. It additionally recorded a internet lack of $90.8 million for 2023, which was narrower than the $158.6 million internet loss it logged in 2022.
Some of the corporate’s notable shareholders embrace Tencent, Condé Nast’s dad or mum firm Advance Magazine Publishers and OpenAI CEO Sam Altman, who was a member of Reddit’s board of administrators from 2015 to 2022.