Reddit IPO: Social Media Platform Seeking $748 Million in Highly Anticipated Stock Launch

By Trisha Andrada

Mar 11, 2024 09:14 AM EDT

Reddit seeks to generate $748 million, putting its worth at $6.5 billion in its most-anticipated initial public offering (IPO) in the United States.

According to a corporate document that was issued on Monday, March 11, the business intends to sell about 22 million shares at a price range of $31 to $34 per share.

Rare Access to IPO

Reddit users and moderators who registered for an account prior to Jan. 1 and would want to take part in the IPO, the social media platform has reserved around 1.76 million shares, CNBC reported. These people may buy and sell shares when Reddit goes public without going through the usual six-month lock-up period that investors face following an IPO.

Doximity, Rivian, and Airbnb are public firms that have permitted certain individuals or groups to participate in their IPOs via directed share programs.

This photo illustration shows the logo of Reddit on a mobile phone in Arlington, Virginia on January 29, 2021.
(Photo : OLIVIER DOULIERY / AFP via Getty Images)

See Also: Reddit to Go Public After Submitting Its IPO Filing to Trade on NYSE Under the Ticker 'RDDT'

Anticipated Stock Launch

In February, Reddit announced its intention to go public on the New York Stock Exchange and trade under the ticker code "RDDT."

As the first big tech stock launch of the year so far and the first social media IPO since Pinterest in 2019, investors are keeping a careful eye on Reddit's impending IPO.

Reddit submitted a preliminary, non-public version of its prospectus for an initial public offering to the Securities and Exchange Commission (SEC) in 2021. At the same time, deal-tracking firm PitchBook reported that Reddit's private market value was $10 billion, and the company had received $1.3 billion in a capital round.

According to a company filing, Reddit reported $804 million in yearly revenue in 2023, up 20% from $666.7 million the previous year. Its net loss for 2023 was $90.8 million, lower than its $158.6 million net loss for 2022.

Tencent, Advance Magazine Publishers (the parent company of Condé Nast), and OpenAI CEO Sam Altman (a former member of Reddit's board of directors from 2015 to 2022) are among the firm's significant shareholders.

See Also: Google Inks Content Licensing Agreement With Reddit to Train AI Models: Report

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