Reddit IPO: The IPO will be led by Morgan Stanley, Goldman Sachs Group Inc., JPMorgan Chase & Co. and Bank of America Corp.
Reddit IPO: Reddit and its investors are seeking to raise as much as $748 million through its initial public offerings which would be one of the biggest IPOs so far this year. Through the IPO, the social media platform plans a sale of 22 million shares for $31 to $34 each, Bloomberg reported citing people in the know. The company is seeking a valuation of as much as $6.5 billion in the listing, the report added as it sets aside about 1.76 million shares in the IPO to be bought by users and moderators who created accounts before January 1.
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The IPO will be led by Morgan Stanley, Goldman Sachs Group Inc., JPMorgan Chase & Co. and Bank of America Corp.
The report claimed that these shares won’t be subject to a lockup period implying that owners can sell them on the opening day of trading, as per company’s filings with the US Securities and Exchange Commission. Reddit began its initial filing in 2021 when IPOs on US exchanges were at an all-time record of $339 billion. In that year, Reddit raised funds valuing it at $10 billion. In 2022, the company could be valued at as much as $15 billion in an IPO, data showed.
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Reddit’s listing will also be watched closely by IPO candidates such as Microsoft Corp.-backed Rubrik Inc. and Waystar Technologies Inc. Reddit was founded in 2005 and had an average of 73.1 million daily active unique visitors in the fourth quarter. The company reported a net loss of $91 million on revenue of $804 million in 2023. In 2022, it reported net loss of about $159 million on revenue of $667 million.
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The largest shareholder in the company is Advance Magazine Publishers Inc., part of the Newhouse family publishing empire that owns Conde Nast. The group bought Reddit in 2006 and spun it out in 2011.
