Reddit Looking To Raise Almost $750 Million In Initial Public Offering

Reddit, a social media platform, plans to generate almost $750 million through an initial public offering of its common stock.

The company stated in a regulatory filing that the IPO will contain 22 million shares of Class A ordinary stock. Reddit offers roughly 15.3 million shares while selling stockholders offer around 6.7 million shares.

The company expects the IPO to be priced between $31 and $34 per share. At the midpoint of that range, the company would raise approximately $451 million, which it intends to utilize for general company operations, taxes, and potential acquisitions.

Reddit Looking To Raise Almost $750 Million In Initial Public Offering

The San Francisco-based company announced that the underwriters have reserved up to 1.76 million shares for sale at the IPO price through a directed share program to eligible platform users and members, certain board members, and friends and family of certain employees and directors.

The underwriters could also purchase up to 3.3 million shares to offset over-allotments.

The site launched in 2005, had more than 76 million daily visitors in December, according to a letter from co-founder Steve Huffman included with the filing. It has almost 100 million unique subreddits.

Reddit Looking To Raise Almost $750 Million In Initial Public Offering

Last month, Reddit unveiled plans for a first public offering. According to filings filed with the Securities and Exchange Commission, they reported net income of $18.5 million — its first profit in two years — for the October-December quarter on revenue of $249.8 million, largely from advertising. The company also announced at the time that it had reached an agreement with Google worth around $60 million, allowing the search giant to use posts from the online discussion site to train its artificial intelligence models and improve services like Google Search.

The arrangement also grants Reddit access to Google AI models to boost internal site searches and other functionality.

Reddit Looking To Raise Almost $750 Million In Initial Public Offering

Shares will be listed on the New York Stock Exchange under the ticker “RDDT”.

SOURCE – (AP)