2 months ago
Reddit's first nationalist offering (IPO) is presently betwixt 4 and 5 times oversubscribed arsenic it seeks a $6.5 cardinal valuation, group acquainted pinch nan matter told Reuters connected Sunday.
Oversubscription doesn't guarantee that Reddit will person a beardown capacity successful its stock market debut, though it indicates nan institution is apt to astatine slightest scope its targeted value scope of $31 to $34 per stock erstwhile it prices nan IPO successful New York connected Wednesday, nan sources said.
Reuters' sources said that Reddit's trading efforts for its IPO are continuing and asked not to beryllium identified because nan specifications are confidential. Reddit declined to remark connected nan subject.
Reddit has already reduced its valuation expectations for nan long-awaited IPO aft it was weighted successful a $10 cardinal backstage fundraising information successful 2021. Reddit's IPO is presently seeking to raise arsenic overmuch arsenic $748 million.
REDDIT AIMING FOR $6.5B VALUATION IN LONG-AWAITED IPO
Reddit's IPO is reportedly oversubscribed by a facet of 4 aliases five, Reuters reported. (CFOTO/Future Publishing via Getty Images / Getty Images)
The societal media web – which hosts forums for users to share, talk and ballot connected contented – has mislaid money each twelvemonth since its 2005 motorboat and has struggled to lucifer nan commercialized occurrence of rivals for illustration Meta's Facebook and X, formerly known arsenic Twitter.
Some advertisers person balked astatine galore Reddit users' attraction connected niche contented and nan platform's attack to content moderation. The level relies connected users who unpaid to mean nan contented posted connected Reddit forums.
REDDIT'S PUBLIC DEBUT COULD MEAN BIG BUCKS FOR OPENAI CEO SAM ALTMAN
Reddit said successful a regulatory filing that it has an mean of much than 73 cardinal regular progressive unsocial users. (Photo Illustration by Sheldon Cooper/SOPA Images/LightRocket via Getty Images / Getty Images)
As volunteers, moderators tin retreat from nan domiciled astatine their discretion and respective discontinue successful protestation past twelvemonth complete Reddit's determination to complaint third-party app developers for information access.
Reddit's 100,000 online forums, known arsenic "subreddits," facilitate conversations connected topics ranging from "the sublime to nan ridiculous, nan trivial to nan existential, nan comic to nan serious," according to co-founder and CEO Steve Huffman.
INVESTORS SUGGEST REDDIT AIM FOR MULTI-BILLION DOLLAR VALUATION AHEAD OF IPO: REPORT
Reddit co-founder and CEO Steve Huffman is starring nan institution toward its IPO. (Bryan Steffy/Variety via Getty Images / Getty Images)
Reddit's "wallstreetbets" forum helped thrust nan "meme-stock" craze of 2021 erstwhile unit investors collaborated to bargain shares of highly shorted companies for illustration video crippled retailer GameStop.
To pull its ain unit investors, Reddit has reserved 8% of nan full shares connected connection done nan IPO for eligible users and moderators connected nan platform, on pinch definite committee members and friends and family members of nan company's labor and directors.
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Reddit had an mean of 73.1 cardinal regular progressive "uniques" – users who usage its level astatine slightest erstwhile a time – successful nan past 3 months of 2023, according to a regulatory filing.
Reuters contributed to this report.
