Reddit aims to raise up to $748 million in its IPO, offering 22 million shares at $31-$34 each. At the high end, the company would be valued at $6.4 billion, below its 2021 private valuation of $10 billion. Reddit itself is selling 15.3 million shares, with the rest offered by existing shareholders.
Notably, Reddit has reserved 8% of the shares for select users and moderators. In 2023, the company reported $804 million in revenue (up 21% YoY) but a $90.8 million net loss. With over 500 million visitors and 73.1 million daily active users in Q4 2023, Reddit’s IPO is being closely watched.
However, the company warns its own WallStreetBets subreddit could cause stock volatility. Led by Morgan Stanley, Goldman Sachs, JPMorgan, and Bank of America, Reddit plans to list on the NYSE under “RDDT”. As the first major tech IPO of the year, its debut will provide insights into the IPO market and valuations of other tech companies considering going public.
Read more at: fortune.com