In this photo illustration, the Reddit logo is displayed on a smartphone.
Mateusz Srodkowski | Sopa Images | Light Rocket | Getty Images
Reddit, a 19-year-old website that hosts millions of online forums, priced its IPO on Wednesday at $34 a share, at the high end of its expected range, two people familiar with the matter said.
The offering values the company at $6.5 billion. Reddit had expected the acquisition price to be between $31 and $34 per share.
Reddit’s public market debut on Thursday, under the ticker symbol “RDDT,” is the first for a major social media company since Pinterest’s debut in 2019 and one of the few venture-backed tech deals in the past two years.
The company will write off its $10 billion private market valuation in 2021, which was at the peak of the tech boom. Soaring inflation and rising interest rates will drive investors out of risk assets in 2022, ultimately forcing startups to scale back, lower valuations and focus on profits over growth. .
On Wednesday, data center hardware company Astera Labs went public, sending its stock price soaring 72% as investors flocked to all things related to artificial intelligence.
Online advertising, Reddit’s core business, faces competition from industry giants like Alphabet and Meta.
Revenue increased 20% from $666.7 million in 2022 to $804 last year. Net loss for 2023 was $90.8 million, an improvement from the $158.6 million net loss recorded in 2022.
clock: What the Reddit IPO means for capital markets.
