Updated February 21st, 2024 at 19:39 IST

Reddit plans to offer IPO shares to platform users: Report

The company intends to set aside shares for approximately 75,000 of its top contributors, known as redditors.

Reported by: Business Desk
Reddit plans to offer IPO shares to platform users: Report  | Image:Reddit
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Reddit to offer IPO: Social media platform Reddit is preparing to offer a portion of its initial public offering (IPO) shares to its most active users, according to a report by the Wall Street Journal on Wednesday.

The company intends to set aside shares for approximately 75,000 of its top contributors, known as redditors, allowing them to purchase Reddit shares at the IPO price before the stock becomes available for trading, sources familiar with the matter revealed.

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This move is a departure from the traditional process, where such early access is typically reserved for institutional investors and large shareholders.

Reddit, headquartered in San Francisco and valued at around $10 billion following a 2021 funding round, has not commented on the report.

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The platform's plans were first reported in January, with a projected date in March. Reddit had filed for its IPO confidentially in December 2021.

The market has been sluggish in recent years, with low trading volumes and many new listings trading below their IPO prices.

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Reddit's IPO, which has been in development for over three years, would be the first major from a social media company since Pinterest's debut in 2019.

(with Reuters inputs)

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Published February 21st, 2024 at 19:39 IST