Reddit, a social media platform, and its investors are hoping to generate up to $748 million through its Initial Public Offering, IPO.
This was contained in a report seen by News.ng on Monday.
The social media network and a few of its current shareholders plan to sell 22 million shares for $31 to $34 a share, according to insiders who asked not to be named since the information was not yet public. The company proposed a valuation of up to $6.5 billion during the offering.
Reddit was launched in 2005 by Aaron Swartz, Alexis Ohanian, and Steve Huffman with headquarters in the San Francisco Bay Area, West Coast, Western US.
Beginning with its first confidential filing in 2021, when IPOs on US exchanges set a record of $339 billion, Reddit’s more than two-year journey to listing follows the ups and downs of the market, as per statistics collated by Bloomberg.
In the year that it raised capital, Reddit was valued at $10 billion. The following year, experts revealed that the platform’s potential IPO valuation may reach $15 billion.
According to the data, IPOs in the US fell sharply and barely reached $26 billion last year. Sources privy to the matter claimed that Reddit was considering a $5 billion valuation after receiving feedback from early talks with possible IPO investors.
Recently, Reddit and Google announced their agreement, which will grant Google access to Reddit’s data API, which provides real-time material from Reddit’s site. In addition to giving Google “an efficient and structured way to access the vast corpus of existing content on Reddit,” this will enable the corporation to incorporate Reddit content into new product displays.
Experts asserted that IPO candidates, including Microsoft Corp.-backed data security start-up Rubrik Inc. and health-care payments company Waystar Technologies Inc., will be closely monitoring Reddit’s listing.
Their considerations stem from the fact that four US listings, including semiconductor designer Arm Holdings Plc’s $5.23 billion offering in September, failed to spark a long-lasting market rebound.
