Reddit to Enter Stock Market at US$34 per Share Following Strong IPO Demand

SAN FRANCISCO - Reddit is on the brink of a new chapter as it prepares to go public with a market value of $6.4 billion. The social media platform's initial public offering was priced at $34 per share, marking the culmination of weeks of investor demand assessment by Reddit's investment bankers.

This sets the stage for Reddit's shares to debut on the New York Stock Exchange under the symbol "RDDT," sparking discussions not only on Reddit's own platform but also across other social media outlets. The buzz around Reddit is fueled by its dedicated user base, who frequent the platform to engage in a wide range of discussions spanning from light-hearted memes to deep philosophical debates, as well as to seek advice and recommendations from fellow members. Despite its popularity, Reddit is considered small in comparison to other tech giants.

Meta Platforms, the parent company of Facebook, which was founded just a year and a half before Reddit, boasts a market value exceeding $1.2 trillion and annual revenue of $135 billion. In contrast, Reddit's revenue remains below $1 billion, and the company has accumulated losses of $717 million, a figure that has grown since its initial attempt to go public in December 2021.

The renewed IPO filing by Reddit attributes its losses to a recent focus on revenue growth strategies. With the influx of funds from the IPO, Reddit now has the resources to fuel its expansion plans and increase its revenue streams. The IPO raised approximately $519 million for the San Francisco-based company, although a portion of this amount will be used to cover commissions and other associated costs.

There is also a possibility of an additional $112 million being raised through the sale of more shares within a 30-day window. As part of the IPO, Reddit reserved up to 1.76 million shares for its platform users, with the majority of remaining shares being purchased by mutual funds and institutional investors, signaling confidence in Reddit's potential in the financial market.

Overall, Reddit's IPO marks a significant milestone in its journey as a social media platform, signaling a new phase of growth and opportunities for the company. With a strong user base and a renewed focus on revenue generation, Reddit is well poised to leverage its IPO proceeds and expand its reach in the digital landscape.