Reddit announces IPO valuation of up to $5.5bn

11th Mar 2024 11:53

(Sharecast News) - Social media platform Reddit confirmed its intention to launch an initial public offering (IPO) on Monday, announcing an estimated valuation of up to $5.5bn.

The company said it and its investors were planning to offer 22 million shares priced between $31 and $34 each, potentially raising proceeds of up to $748m, with Reddit itself selling 15 million shares to raise up to $519m.

Reddit was aiming to list on the New York Stock Exchange under the symbol 'RDDT', according to the amendment to its prospectus filed on Monday.

According to MarketWatch, Reddit intends to have 162.28 million class A and class B shares post-IPO.

At the upper end of its price range, Reddit's market capitalisation would reach $5.5bn, representing a valuation about 6.55 times its 2023 full-year revenue of $804m.

Leading the underwriting process were Morgan Stanley, Goldman Sachs, JPMorgan and Bank of America Securities, MarketWatch reported.

Despite Reddit's lack of profitability, with a reported loss of $90.8m for 2023, it had improved compared to its 2022 figures of a $158.55m loss on revenue of $666.7m.

Reporting by Josh White for Sharecast.com.

Correction: This article has been amended to clarify the number of shares being offered by Reddit itself, as a portion of those being offered by the company and its investors.