Reddit, a popular social media network, is aiming for a valuation of approximately $6.5 billion (£5 billion) as it prepares to list on the New York Stock Exchange. The company, as stated in its filings with the U.S. Securities and Exchange Commission, plans to sell 22 million shares priced between $31 and $34 each in its upcoming initial public offering, potentially raising up to $748 million.
Initially planning to go public in 2021, Reddit delayed its IPO due to economic conditions and weak tech stock performance. The IPO, set to take place later this month under the ticker symbol RDDT, will be the most significant social media offering since Pinterest in 2019.
Described as the “front page of the internet” by its founders, Reddit intends to involve users and moderators in the IPO. A portion of the shares will be reserved for sale to targeted Reddit users, board members, employees’ friends and family, with eligibility criteria for user participation outlined.
Reddit is a digital platform where users can join communities, share experiences, and engage in discussions on various topics. With 100,000 active communities and 1 billion posts as of December 2023, Reddit sees potential growth in advertising and data licensing opportunities.
The company also aims to provide users with the opportunity to become investors through the IPO, while raising capital and offering liquidity to employees. Reddit’s recent financial filings showed a 21% revenue increase but a $90.8 million loss in 2023.
In preparation for its IPO, Telegram founder Pavel Durov announced that the messaging platform is exploring the possibility of going public. With 900 million users and a $30 billion valuation, Telegram is nearing profitability and has no plans to sell.
Source: www.theguardian.com
