Reddit IPO: Shares Pop More Than 60% in Debut, Internet Company Nets $519 Million
21.03.2024 - 17:31
/ variety.com
Todd Spangler NY Digital Editor Investors rallied around Reddit‘s initial public offering Thursday, driving the discussion-forum company’s stock up over 50% in its market debut. Through the IPO — expected to be among the biggest tech stock offerings of the year — Reddit raised $519 million and created a windfall for existing shareholders, including Condé Nast parent company Advance Publications and OpenAI CEO Sam Altman.
Reddit shares began trading on the New York Stock Exchange on Thursday (March 21) under the ticker symbol “RDDT.” The initial offering price was $34 per share, valuing Reddit at $6.4 billion (less than its prior $10 billion private valuation). As of 1:20 p.m.
ET, shares were trading at $56.12 apiece. Reddit, the 19-year-old company once billed as “the front page of the internet,” said it plans to use the net proceeds from the IPO for general corporate purposes as well as potentially to “in-license, acquire or invest in complementary technologies, assets or intellectual property.” On Thursday, Reddit announced the pricing of its IPO at $34 per share — the high end of its previous range.
A total of 22 million shares of Class A common stock were sold in the offering (15.28 million by Reddit and 6.72 million by other shareholders). In addition, Reddit has granted underwriters a 30-day option to purchase up to an additional 3.3 million shares of stock at the IPO price.
“We built Reddit with the belief that communities unlock the power of human creativity and create a sense of belonging and empowerment for their members,” the company says in its prospectus. “Our over 100,000 active communities” — known as subreddits — “have channeled the power of human creativity to grow Reddit since our founding.” Advance
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