Reddit plans to go public with an IPO aiming for a $6.4 billion valuation and hoping to raise $748 million.

Reddit plans to go public with an IPO aiming for a $6.4 billion valuation and hoping to raise $748 million.

Reddit is preparing for one of the biggest initial public offerings of the year, aiming for a $6.4 billion valuation. The company plans to sell 22 million shares at a price ranging from $31 to $34 per share, potentially raising $748 million at the top end of the range. The offering includes about 15.3 million shares from the company and the remainder from other investors, including Reddit employees.

This pricing range is a significant decrease from Reddit’s previous $10 billion private valuation in August 2021. The company is looking to attract retail traders, particularly those active on the r/WallStreetBets forum, by reserving 8% of shares for users, moderators who created accounts before January 1, and friends and family of board members and employees. These shares will not be subject to lockup restrictions, allowing owners to sell on the first trading day.

Reddit’s IPO has been in the works since 2021, a time when retail investors impacted the market with meme-stock mania. The company’s offering will be closely watched by Wall Street, as recent IPOs from companies like Birkenstock and Instacart have struggled to gain strong traction. This move will provide insight into the current IPO market landscape.

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