Popular social media platform, Reddit Inc.and its investors are reportedly targeting a substantial sum of $748 million in an upcoming initial public offering (IPO), which could rank among the largest of the year.
As Bloomberg reported on Thursday, Reddit plans to sell 22 million shares, each priced between $31 and $34. This move is speculated to value the company as much as $6.5 billion.
About 1.76 million shares in the IPO will be reserved for early Reddit users and moderators. These shares will not be subject to a lock-up period, allowing owners to sell them on the opening day of trading, according to documents filed by Reddit with the United States Securities and Exchange Commission.
See also: From Reddit IPO Hate to Shorting Stocks: A Polarizing Debate Emerges Among Redditors
The journey to going public has been a long one for Reddit, which began in 2021. Despite the ups and downs of the market and the obstacles of the global pandemic, the company’s IPO is set to make a mark on this year’s list of new public offerings. year.
Reddit has been a major player in the social media space since its inception in 2005. With an impressive average of 73.1 million unique visitors logging in daily during the fourth quarter, the platform’s largest shareholder is Advance Magazine Publishers Inc.which is part of the publishing empire of the Newhouse family which also owns Condé Nast.
Leading the IPO are major financial institutions Morgan Stanley, Goldman Sachs Group Inc., JP Morgan Chase & Co.AND Bank of America Corp. Reddit shares are expected to trade on the New York Stock Exchange under the symbol RDDT.
Read next: Jim Cramer says successful Reddit IPO could spell trouble for stocks: ‘Anyone who wants the rally to continue needs to root against this deal’
This content was partially produced with the help of artificial intelligence tools and was reviewed and published by Benzinga editors.
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