Reddit is aiming for a valuation of up to $6.4 billion in its US initial public offering (IPO), the social media platform said today, as it nears one of the most-anticipated stock market debuts of the last few years.
The company, along with some of its existing investors, is targeting a sale of about 22 million shares, priced between $31 and $34 each, to raise up to $748m.
The IPO, a major litmus test for investors' appetite for new listings, will come more than two years after the company began preparations to go public. So far this year, the IPO market recovery has been uneven.
The targeted valuation, on a fully diluted basis, is less than the $10 billion Reddit was valued at after a fundraising in 2021.
After its launch in 2005, Reddit became one of the cornerstones of social media culture. Its iconic logo - featuring an alien with an orange background - is one of the most recognised symbols on the internet.
Its 100,000 online forums - dubbed "subreddits" - allow conversations on topics ranging from "the sublime to the ridiculous, the trivial to the existential, the comic to the serious," according to co-founder Steve Huffman.
Huffman himself turned to one of the subreddits for help to quit drinking, he wrote in his letter. Former US President Barack Obama also did an "AMA" ("ask me anything"), internet lingo for an interview, with the site's users in 2012.
The company's influential communities are best known for the "meme-stock" saga of 2021, when several retail investors collaborated on Reddit's "wallstreetbets" forum to buy shares of highly shorted companies like video game retailer GameStop.
Reddit expects to list on the New York Stock Exchange under "RDDT."
