Reddit Prices IPO at Top of Range Ahead of NYSE Debut
Reddit prices its initial public offering at $34 per share, raising $519 million and valuing the social media company at $6.5 billion. The stock market debut marks the first major social media IPO since Pinterest in 2019.
Reddit prices its initial public offering at $34 per share, hitting the top of its expected range and raising $519 million. The offering values the 19-year-old social media company at approximately $6.5 billion as it prepares to trade on the New York Stock Exchange under the ticker symbol "RDDT." This debut represents the first major social media IPO since Pinterest went public in 2019.
The company sells 15.28 million shares in the offering, while existing shareholders sell an additional 6.72 million. Despite the strong pricing, Reddit takes a significant haircut from its $10 billion private market valuation in 2021, reflecting a broader shift in the tech sector where rising interest rates push investors away from risky assets.
Reddit faces tough competition in the online advertising space from industry giants like Alphabet and Meta, though it shows improving financials. Revenue increases 20% last year to $804 million, and the company reduces its net loss to $90.8 million from $158.6 million in the previous year.