Reddit revealed it will sell 22 million shares, priced between $31 and $34 each
Message board site Reddit aims to raise $748 million in its initial public offering (IPO), targeting a $6.4 billion valuation. The company revealed it will sell 22 million shares, priced between $31 and $34 each.
The valuation is lower than previous expectations due to investor caution regarding unprofitable ventures. Reddit reported a loss of $90.8 million in 2023 and saw a net income of $18.5 million in the last quarter of the year.
At an IPO price of $32.50, it expects to pocket about $450.9 million after expenses.
The company plans to use these funds for day-to-day operations, acquisitions and technology investments.
In February, Reddit applied to list on the New York Stock Exchange (NYSE) under the symbol RDDT.