Popular social media platform, Reddit Inc., and its investors are reportedly targeting a substantial $748 million in an upcoming initial public offering (IPO), which could rank among the year's largest.
As Bloomberg reported on Thursday, Reddit plans to sell 22 million shares, each priced between $31 and $34. This move is speculated to value the company at a hefty $6.5 billion.
Approximately 1.76 million shares in the IPO will be set aside for Reddit's early users and moderators. These shares will not be subject to a lockup period, allowing owners to sell them on the opening day of trading, as per Reddit's filings with the U.S. Securities and Exchange Commission.
See Also: From Hating Reddit IPO To Shorting The Stock: A Polarizing Debate Emerges Among Redditors
The journey to listing has been a long one for Reddit, initially filing back in 2021. Despite the market's ups and downs and the hurdles of the global pandemic, the company's IPO is set to make a splash on this year's list of new public offerings.
Reddit has been a significant player in the social media space since its inception in 2005. With an impressive average of 73.1 million unique visitors logging in daily during the fourth quarter, the platform's main shareholder is Advance Magazine Publishers Inc., which is a part of the Newhouse family's publishing empire that also owns Conde Nast.
Leading the IPO are notable financial institutions Morgan Stanley, Goldman Sachs Group Inc., JPMorgan Chase & Co., and Bank of America Corp. Reddit's shares are expected to trade on the New York Stock Exchange under the symbol RDDT.
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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