New Delhi

Reddit Inc, in collaboration with its investors, is gearing up for what could be a groundbreaking Initial Public Offering (IPO), targeting to raise up to $748 million.

Advertisment

According to Bloomberg, this move would position Reddit among the major IPOs of the year, marking a significant milestone for the social media platform.

According to sources familiar with the matter, Reddit plans to offer 22 million shares priced between $31-34 each. This move is part of the company's ambition to achieve a valuation as high as $6.5 billion during its listing phase.

Additionally, 1.76 million shares of Reddit's IPO will only be available to moderators and users who registered accounts prior to January 1.

Advertisment

These shares will not be subject to a lockup period, enabling owners to trade them on the opening day of trading.

The IPO is being facilitated by a consortium of major financial institutions, including Morgan Stanley, Goldman Sachs Group Inc, JPMorgan Chase & Co, and Bank of America Corp.

Reddit is poised to debut on the New York Stock Exchange under the symbol RDDT, signalling its entry into the realm of publicly traded companies.

Advertisment

Reddit's IPO has garnered substantial attention within the financial market, especially considering its potential impact on the IPO landscape.

The company's decision to offer shares to its own users and moderators adds a unique dimension to its public debut strategy.

The listing of Reddit will be closely monitored by industry observers, including other potential IPO candidates like Rubrik Inc. and Waystar Technologies Inc., both eyeing significant market debuts.

Since its founding in 2005, Reddit has grown to become a well-known social media site, with an average of 73.1 million active unique visitors each day during the fourth quarter.

Despite reporting a net loss of $91 million on revenue of $804 million in 2023, Reddit's growth trajectory has captured the attention of investors.

Notably, the largest shareholder in Reddit is Advance Magazine Publishers Inc., a part of the Newhouse family publishing empire that also owns Conde Nast.

Having acquired Reddit in 2006 and subsequently spun it out in 2011, Advance Magazine Publishers Inc. retains a significant stake in the platform, underlining its enduring influence in Reddit's journey towards its IPO.

(With inputs from Bloomberg)