In this photo illustration, the Reddit logo can be seen displayed on a smartphone.
Mateusz Slodkovsky | Sopa Images | Light Rocket | Getty Images
Reddit, a 19-year-old website with millions of online forums, priced its IPO on Wednesday at $34 a share, above the expected range.
The offering brought in $519 million, according to one company Press release, the company is valued at nearly $6.5 billion. Reddit originally planned to price the deal at $31 to $34 per share.
Reddit debuts on the public markets Thursday under the ticker “RDDT,” which will be the first time a major social media company has done so since last year Pinterest The deal, which debuted in 2019, is one of a handful of venture-backed tech deals in the past two years.
By 2021, at the height of the tech boom, the company will lose $10 billion from its private market valuation. Soaring inflation and rising interest rates forced investors to flee risk assets in 2022, ultimately forcing startups to downsize, slash valuations, and focus on profits rather than growth.
On Wednesday, data center hardware companies Astra Labs After its listing, its stock price soared 72% as investors flocked to anything involving artificial intelligence.
Reddit’s core business, online advertising, faces competition from industry giants letter and Yuan.
Revenue grew 20% last year, from $666.7 million in 2022 to $804. Net loss in 2023 was $90.8 million, an improvement from the net loss of $158.6 million in 2022.
Reddit sold 15.28 million shares in the offering, and existing shareholders sold another 6.72 million shares.
watch: What the Reddit IPO means for capital markets.
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