It will be the first social media company to go public since Pinterest in 2019
Reddit $RDDT, the social media platform best known for hosting more than 100,000 forums, is looking to raise up to $748 million in its initial public offering (IPO), valuing the company at as much as $6.5 billion. The company will offer 22 million shares at between $31 and $34 per share, according to a new regulatory filing.
The IPO would raise between $682 million and $748 million under those terms, with a market capitalization of between $4.9 billion and $5.4 billion.
Reddit has set aside about 1.76 million shares for users and moderators on its platform, referred to as Redditors, who created their accounts before Jan. 1 and want to participate in the IPO. In its filing, the company warned Redditors that their participation in the IPO “could result in increased volatility in the market price” of its Class A common stock.
Reddit filed its IPO prospectus with the U.S. Securities and Exchange Commission last month. If the company follows through on its plans, it will debut on the New York Stock Exchange and trade under the ticker symbol “RDDT.” It’s expected that Reddit will go public sometime this month.
It will also be the first social media company to go public since Pinterest $PINS did so in 2019 with a $12.7 billion valuation.
Reddit first filed to go public through a confidential public offering prospectus in late 2021, when it had been valued at about $10 billion.
Reddit recorded annual sales of $804 million in 2023, up from $666.7 million in 2022, according to a regulatory filing. The company also noted a net loss of $90.8 million, a narrower loss than its $158.6 million net loss in 2022.
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