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Here's how Reddit plans to price shares when it goes public

·1 min

Reddit plans to price its shares between $31 and $34 for its upcoming initial public offering (IPO). The IPO is anticipated to be the first for a social media company in years. Reddit intends to offer 22 million shares of Class A stock, potentially raising up to $748 million. The company expects to earn approximately $450 million from the IPO and intends to use the funds for general purposes, including operating expenses and potential investments. Reddit seeks a valuation of $6.4 billion, which is lower than its previous target of $10 billion. The IPO is seen as a potential indicator for the larger IPO market. Reddit reported a net loss of $90.8 million in 2023 but saw a 21% increase in revenue. It now has over 73 million daily active users and has reserved 8% of its IPO shares for its most loyal users. However, Reddit acknowledges that increased retail investor participation could lead to greater stock price volatility.