The social networking site Reddit stated on Monday that it is looking for a valuation of up to $6.4 billion in its U.S. initial public offering (IPO), as it approaches one of the most anticipated stock market debuts of the past few years.
To generate up to $748 million, the firm and a portion of its current investors plan to sell roughly 22 million shares at a price of $31 to $34 a share.
The IPO will take place more than two years after the company started making plans to go public and will serve as a significant barometer of investor interest in fresh listings. The IPO market’s rebound has been patchy thus far this year.
Reddit, which debuted in 2005, quickly rose to prominence as a major figure in social media culture. Its well-known emblem, an extraterrestrial on an orange backdrop, is among the most recognizable images on the internet.
According to co-founder Steve Huffman, its 100,000 online forums, known as “subreddits,” facilitate discussions on a wide range of subjects, from “the sublime to the ridiculous, the trivial to the existential, the comic to the serious.”
In his letter, Huffman stated that he had sought assistance from one of the subreddits in order to stop drinking. In 2012, former US President Barack Obama also conducted an online interview with the site’s users, known as a “AMA” or “ask me anything.”
The “meme-stock” incident of 2021, in which a number of retail investors banded together on Reddit’s “wallstreetbets” forum to purchase shares of heavily shorted firms, including video game retailer GameStop, is the most well-known story involving the company’s prominent communities.
The incident turned retail traders into formidable competitors and destroyed hedge funds that had placed bets against those equities. Additionally, it was included in a 2023 Seth Rogen movie.
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