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Updated March 20th, 2024 at 21:25 IST

Reddit IPO pricing could surpass expectations, seeking $6.5 billion valuation

The company aims to achieve a valuation of $6.5 billion and initially planned to sell shares for between $31 and $34 each.

Reported by: Business Desk
Reddit IPO valuation
Reddit IPO valuation | Image:Reddit
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Reddit IPO: Reddit, the San Francisco-based social media platform, is considering pricing its initial public offering (IPO) at the top end of the indicated range or even higher, according to a source familiar with the matter. The company aims to achieve a valuation of $6.5 billion and initially planned to sell shares for between $31 and $34 each. If priced at the upper limit, the IPO could raise $748 million for Reddit and its selling shareholders.

Offering reportedly oversubscribed

After a delay caused by market volatility due to the Federal Reserve's quantitative tightening, Reddit's IPO is set to hit the market on Thursday. The offering is reportedly oversubscribed between four and five times, indicating strong investor interest and suggesting that the company could reach its targeted valuation.

To capitalise on its popularity, Reddit has reserved 8 per cent of the total shares for eligible users, moderators, certain board members, and friends and family of its employees and directors. The company has declined to comment on the pricing plans, which were first reported by Bloomberg News.

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Morgan Stanley, Goldman Sachs, JP Morgan, and Bank of America Securities are the lead underwriters for the offering. Reddit's shares are expected to be listed on the New York Stock Exchange under the symbol "RDDT."

(with Reuters inputs)

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Published March 20th, 2024 at 21:25 IST

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