Social media platform Reddit's IPO has been priced at $34 per share. Reddit aims to raise $748 million. The platform sold 22 million shares at $34 per share.
This gives the company a valuation of $6.4 billion, which is a drop from the valuation in 2021. In 2021, the company was valued at $10 billion, as per The Guardian.
In an effort to attract retail investors, the social media platform set aside 8 percent of its shares available for eligible users, specific board members, and friends and families of the employees, reports Reuters.
Recently, Reuters reported that Reddit’s IPO was about four to five times oversubscribed. Even though this oversubscription does not come with a promise of good performance, the company would be reaching the targeted price of $31 to $34 per share, according to the Reuters report.
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Steve Huffman, Co-Founder, Reddit, said in the SEC, “We are going public to advance our mission and become a stronger company. We hope going public will provide meaningful benefits to our community as well.”
He further added, “We have many opportunities to grow both the platform and the business, the latter through advertising, monetizing commerce on the platform, and licensing data. Our work to make Reddit faster, easier to use, easier to moderate and govern, and simpler to navigate and find relevant communities is driving growth today and will continue to be our focus into the future.”
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