Reddit's long-awaited IPO is targeting a $6.4 billion valuation

• Reddit is targeting a $6.4 billion valuation for its IPO this year.
• The company is planning to sell 22 million shares, with a pricing range of $31 to $34.
• At the top end of the valuation range, the offering would raise $748 million.

Social media platform Reddit has announced more details for what's expected to be one of the biggest IPOs of the year.

The company is planning to sell 22 million shares at a price of $31 and $34, according to a Monday SEC filing. At the top end of that range, Reddit would raise $748 million. About 15.3 million of the 22 million shares will be sold by the company. The rest will be sold by the other investors, who are Reddit employees.

Reddit's expected pricing range sets a fully diluted valuation range between $5.8 billion and $6.4 billion, marking a sharp decrease from the $10 billion private valuation the company achieved in its last funding round, in August 2021.

In an attempt to attract the retail traders that have made its r/WallStreetBets forum such an influential force, Reddit has reserved 8% of the total shares on offer for users and moderators who created accounts before Jan. 1, as well friends and family of various board members and employees. Those shares won't be under lockup, meaning its owners can sell their shares on the first official trading day.

Reddit's IPO has been in the works since 2021. That was at the peak of the meme-stock mania, when troves of retail investors active on subreddits like r/WallStreetBets executed short squeezes on stocks like GameStop and AMC, driving prices "to the moon."

Wall Street will be closely watching Reddit as a signal for how the overall IPO market is doing. The landscape has been shaky lately, with offerings from Birkenstock to Instacart failing to get strong traction.