Some of the shares sold in the IPO will be new shares issued by Reddit.
Reddit Slashes IPO Target to $6.5 Billion Valuation: Insider Reports
Media giant Reddit is poised to launch its initial public offering (IPO) with a target valuation of up to $6.5 billion, according to sources familiar with the matter who spoke with Reuters on Friday. This valuation marks a significant decrease from its previous worth a few years ago.
The company is reportedly aiming to establish a price range of $31 to $34 per share, as revealed by the sources.
Reddit has refrained from commenting on Reuters’ request for insight into the matter.
Reports suggest that a portion of the shares offered in the IPO will consist of new shares generated by Reddit, while others will be existing shares held by its investors and employees, as outlined by one of the sources.
In a funding round conducted in 2021, Reddit boasted a valuation of $10 billion. Earlier reports from January indicated Reddit’s intention to sell approximately 10% of its shares during the IPO.
Renowned for its specialized discussion forums and unique voting system where users can rate content with “up” or “down” votes, Reddit disclosed a narrowed net loss of $90.8 million and a revenue growth of approximately 21% in 2023.
The unveiling of Reddit’s IPO filing occurred last week, nearly twenty years after its inception. This IPO represents a pivotal moment for the platform, which continues to trail behind the commercial successes of social media counterparts like Facebook and X (formerly Twitter).