Reddit Inc. Plans IPO to Raise Up to $748 Million
Reddit Inc. and its investors are gearing up for an initial public offering (IPO) that could raise as much as $748 million. The popular social media platform is looking to sell 22 million shares at a price range of $31 to $34 each, aiming for a valuation of up to $6.5 billion in the listing.
The company is also making a unique move by setting aside about 1.76 million shares in the IPO specifically for users and moderators who created accounts before Jan. 1. This is seen as a nod to the community that has helped make Reddit a major player in the social media landscape.
Reddit’s valuation has been a topic of interest since its initial filing in 2021. The company reported a net loss of $91 million on revenue of $804 million in 2023, indicating both growth potential and financial challenges.
The IPO is being led by investment banks Morgan Stanley, Goldman Sachs Group Inc., JPMorgan Chase & Co., and Bank of America Corp. Reddit co-founder and CEO Steven Huffman expressed confidence in the company’s future, citing opportunities for growth through advertising and data licensing agreements.
Huffman himself owns shares giving him 3.5% of the voting power, with other major shareholders including Chief Operating Officer Jennifer Wong and entities linked to OpenAI CEO Sam Altman, Tencent Holdings Ltd., and others.
As Reddit prepares to go public, all eyes will be on how the company navigates the increasingly competitive social media landscape and capitalizes on its dedicated user base. Stay tuned for more updates on Reddit’s IPO on Jala News.
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