Reddit has set the price of its shares at the top of its targeted range, valuing the popular social media platform at $6.4 billion as it proceeds with its initial public offering (IPO). 

Reddit Raises $748 Million

According to BBC, the company has raised $748 million by selling 22 million shares at $34 each on Wednesday, making it one of the biggest IPOs by a social media firm to date. 

Trading of the shares is set to commence on Thursday at the New York Stock Exchange. Reddit extended an offer to some of its users to purchase shares, although the exact number of participants remains undisclosed.

Established nearly two decades ago, Reddit has grown into one of the world's most popular websites. It serves as an online forum where users engage in discussions on a wide array of topics. As of December 2023, the platform had over 73 million users.

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IPO Filing of Reddit

However, the IPO filing has brought to light a longstanding query concerning the profitability of the platform, which is primarily driven by user-generated content. Reddit operates on a free-to-use model, allowing users to browse, post, and comment without any charges.

Despite its extensive user base, the platform struggled to generate profits for many years, prompting questions about its multi-billion-dollar valuation even if it has never made money. However, one of its advantages is that it still does not have a significant rival, even though efforts have been made to create a similar platform. 

READ MORE: Google Inks Content Licensing Agreement With Reddit to Train AI Models: Report