Reddit to lift almost $750 million in upcoming IPO

On this picture illustration, the Reddit brand is displayed on a mobile phone and laptop monitor on February 13, 2024 in Los Angeles, California. 

Mario Tama | Getty Pictures

Reddit goals to lift as much as $748 million as a part of its upcoming IPO, by which the social media firm is searching for a valuation of about to $6.5 billion.

The corporate plans to promote about 22 million shares between a spread of $31 to $34 per share, in accordance with a corporate filing launched Monday.

Reddit has additionally put aside roughly 1.76 million shares for sure customers and moderators, generally known as Redditors, who wish to take part within the preliminary public providing and have created their consumer accounts earlier than Jan. 1. These Redditors will be capable 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 buyers from promoting shares for six months after the IPO.

The corporate warned in its S-1 submitting that Redditors who take part in its IPO “might lead to elevated volatility available in the market value” of the corporate’s Class A typical inventory. Different corporations which have gone public and allowed sure group members and others to participate of their IPOs by way of comparable directed share packages, embody Doximity, Rivian and Airbnb.

Reddit filed its IPO prospectus in February, and stated it deliberate to go public on the New York Inventory Alternate and commerce underneath the ticker image “RDDT.”

Traders are carefully 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 Alternate Fee. Throughout that very same 12 months, Reddit raised $1.3 billion in a funding spherical and had a non-public market valuation of $10 billion, in accordance with the deal-tracking service PitchBook.

Reddit’s annual gross sales in 2023 have been $804 million, which was a 20% year-over-year enhance from $666.7 million, in accordance with the corporate’s S-1 submitting. It additionally recorded a web lack of $90.8 million for 2023, which was narrower than the $158.6 million web loss it logged in 2022.

A number of the firm’s notable shareholders embody Tencent, Condé Nast’s mum or dad firm Advance Journal Publishers and OpenAI CEO Sam Altman, who was a member of Reddit’s board of administrators from 2015 to 2022.

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