- Reddit is seeking to go public at a valuation between $5-6 billion in one of the most anticipated tech IPOs recently, with shares priced at $31-34 each
- Early investors like Sam Altman stand to profit substantially at the top of the proposed range, with his shares worth over $400 million
- Reddit generated $804 million in revenue in 2021, up 52% year-over-year, and is allowing its loyal community moderators to participate in the IPO through a directed share program
Reddit is seeking to go public at a valuation between $5 billion and $6 billion, setting the stage for one of the most anticipated tech IPOs in recent years.
Bidding Up the Price
The company plans to price its shares between $31 and $34 each, according to a person familiar with the matter. This would give Reddit a valuation of up to $6.5 billion. Reddit filed its IPO paperwork in February and intends to list on the New York Stock Exchange under the symbol RDDT.
Windfall for Early Investors
At the top of the proposed range, Sam Altman’s shares would be worth over $400 million. The OpenAI CEO led a $50 million funding round into Reddit in 2014. Other notable shareholders that stand to profit include Tencent and Advance Magazine Publishers, parent of Condé Nast.
Financial Performance
In 2021, Reddit generated $804 million in annual revenue, a 52% increase over the previous year. Its net loss narrowed to $508 million, down from $1.2 billion in 2020.
Engaging Its Loyal Community
Reddit allows its community moderators, known as “Redditors,” to participate in the IPO through a directed share program. This is similar to programs offered by other tech companies like Airbnb and Rivian.
Looking Ahead
The IPO comes amid a slow market for new issues, making Reddit’s listing the first major tech offering of 2024. It also represents the first social media debut since Pinterest in 2019. Despite market volatility, Reddit is pushing forward with its public debut, setting the stage for a new chapter in the company’s evolution.
