Helena Lyng Blak
10 weeks ago

Ardent enthusiasm for Reddit IPO?

Sources indicate that the IPO was as much as five times oversubscribed.
Reddit logo with stock market chart background
Poetra.RH / Shutterstock.com

In an exclusive by Reuters, sources with knowledge of the matter claimed that Reddit’s Initial Public Offering (IPO) is currently between four and five times oversubscribed.

Reddit’s goal of achieving a $6.5 billion valuation seems increasingly feasible. The company also appears well-positioned to meet its targeted price range of $31 to $34 per share.

Following its initial public filing with the US Securities and Exchange Commission (SEC) on February 22, 2024, Reddit offered select users a Directed Share Program (DSP).

The DSP would allow some of the site’s most active users and moderators to participate in the IPO by setting aside a predetermined number of shares at the same price as institutional investors.

According to the Reddit IPO prospectus, filed on March 11, the social network plans to list 22 million shares.

What is Reddit?

Reddit is a social media network, founded in 2005, akin to old-school discussion forums. It consists of sub-communities known as ‘subreddits,’ each dedicated to discussing and sharing content within niche subcultures, fan communities, and other specialized interests.

The site averages 73 million daily active users across more than 100,000 subreddits. For comparison, X had around 245 million daily active users in late 2023, as per Mashable. As of February 2024, Reddit ranked as the 15th most popular website globally, just below TikTok and above Netflix, LinkedIn, and Live.com, which hosts Outlook email.

Despite its popularity, Reddit has not turned a profit in its 18 years of existence.

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