Reddit, the irreverent social media platform set to go public as early as this week, is already seeing big demand for its first stock offering, according to a new report. Reuters, citing unnamed sources familiar with the matter, reports that Reddit’s IPO is four to five times oversubscribed. An oversubscribed initial public offering means demand for the shares exceeds supply.
The big demand is a positive sign for Reddit’s hopes to achieve a $6.5 market value when it goes public. It also means Reddit is likely to reach its targeted share price of $31 to $34, Reuters reports.
Reddit and its shareholders are looking to sell almost $748 million worth of stock in its IPO, which could lead to a market cap of $6.5 billion. A regulatory filing shows the company will offer 15 million shares for between $31 and $34 per share, with existing shareholders planning to sell another seven million.
The company first filed to go public through a confidential public offering prospectus in late 2021, when it had been valued at about $10 billion. Under the terms disclosed in a March 11 filing with U.S. federal regulators, the company could now be valued at nearly $6.5 billion.
Reddit will debut on the New York Stock Exchange and trade under the ticker symbol “RDDT.” When it does land on the stock market, it will do so as the first major U.S. social media company to go public in years. Pinterest was the last platform to attempt an IPO, launching on the NYSE in 2019 with a $12.7 billion valuation.
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-William Gavin contributed to this article.