Social media platform Reddit on Wednesday priced its initial public offering at the high end of its target range of $31 to $34 per share, raising $748 million and providing a much-needed boost to the sluggish technology IPO market. brought about change.
The IPO sold 22 million shares by the company and existing shareholders at a price of $34 per share, valuing Reddit at about $6.4 billion.
Excluding shares sold by existing shareholders, Reddit raised total proceeds of $519.4 million.
Reuters reported earlier Wednesday that Reddit and its bankers were guiding the IPO to price it at or above the high end of a specified range.
The IPO pricing at the top of the range vindicates the company’s decision to lower its valuation expectations after being valued at $10 billion in a private funding round in 2021. .
If Reddit and Astera Labs’ offering is successful, it could boost the tech IPO market after two years of mostly stagnant activity.
Earlier this year, the entry of other major companies into the stock market, including KKR-backed Brightspring and sportswear brand Amer Sports, received a lukewarm response from investors.
In February, Reddit announced a $66 million deal to provide training data to Alphabet’s Google.
Reddit said the U.S. Federal Trade Commission conducted an investigation last week that focused on the company’s sales, licensing, and sharing of user-generated content with third parties to train artificial intelligence models.
Reddit stock is scheduled to begin trading on the New York Stock Exchange on Thursday under the ticker “RDDT.”
Morgan Stanley, Goldman Sachs, JPMorgan Chase & Co., and Bank of America are the lead underwriters for Reddit’s services.
