Reddit aiming for $6.5B valuation in long-awaited IPO
Reddit is targeting a $6.5 billion valuation in its forthcoming initial public offering (IPO), the social media platform revealed Monday.
The company said in a Securities and Exchange Commission (SEC) filing it plans to raise up to $748 million in its public debut with the sale of roughly 22 million shares priced between $31 and $34 each.
Reddit is set to debut on the New York Stock Exchange this month under the ticker "RDDT," after confidentially filing for its IPO in 2021. It was valued at about $10 billion in a funding round it completed that year.
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Since then, reports have speculated Reddit would target its valuation anywhere from $5 billion to $15 billion.
Founded in 2005 by web developer Steve Huffman and entrepreneur Alexis Ohanian, husband of tennis champion Serena Williams, Reddit has been backed by several marquee investors, from venture capital giant Andreessen Horowitz to China's tech behemoth, Tencent Holdings.
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The platform has been a cornerstone of social media culture with a cult following of devoted users, but the online discussion board has lagged behind the success of contemporaries such as Facebook and X.
The company has never turned a profit, and said in its filing earlier that it was "in the early stages of monetizing (its) business".
Reddit had an average of 73.1 million daily active "uniques" – users who use its platform at least once a day – in the three months ended Dec. 31, 2023, it said.
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The lead underwriters for the social media platform's offering are Morgan Stanley, Goldman Sachs, JPMorgan and Bank of America Securities.
FOX Business' Eric Revell and Reuters contributed to this report.