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Reddit's initial public offering (IPO) is currently targeting a valuation of $6.5 billion and is oversubscribed by four to five times, people familiar with the matter told Reuters on Sunday.
Oversubscription does not guarantee that Reddit will perform well. stock market But it shows the company is likely to at least hit its target price range of $31 to $34 per share when it announces its IPO price in New York on Wednesday, the people said.
Reuters sources said marketing efforts for Reddit's IPO are continuing and requested anonymity because the details are confidential. Reddit declined to comment on the matter.
Reddit has already reduced the valuation of its much-anticipated IPO after being valued at $10 billion in a 2021 private funding round. Reddit's IPO is currently aiming to raise up to $748 million.
Reddit aims for $6.5 billion valuation in long-awaited IPO
According to Reuters, Reddit's IPO is four to five times oversubscribed. (CFOTO/Future Publishing via Getty Images / Getty Images)
The social media network, which hosts forums for users to share, discuss and vote on content, has lost money every year since its launch in 2005, even as it rivals the commercial success of rivals such as I'm having a hard time. meta facebook and X, formerly known as Twitter.
Some advertisers have balked at the platform's approach and the niche content focus of many Reddit users. content moderation. The platform relies on its users to self-moderate the content posted on Reddit forums.
Reddit's public debut could mean huge profits for OPENAI CEO Sam Altman
Reddit said in a regulatory filing that it has an average of more than 73 million daily active unique users. (Photo illustration: Sheldon Cooper/SOPA Images/LightRocket, Getty Images / Getty Images)
As volunteers, moderators can decline their roles at their own discretion, and some quit last year to protest Reddit's decision to charge third-party app developers for data access. .
Reddit's 100,000 online forums, known as “subreddits,” foster conversations on topics ranging from “the sublime to the ridiculous, the trivial to the existential, and the humorous to the serious.” According to the co-founders and co-founders, CEO Steve Huffman.
Investors hint at Reddit aiming for multi-billion dollar valuation ahead of IPO: Report
Reddit co-founder and CEO Steve Huffman is leading the company toward an IPO. (Brian Steffey/Variety via Getty Images/Getty Images)
Reddit's “wallstreetbets” forum The popularity of “meme stock” In 2021, retail investors banded together to buy stocks in heavily shorted companies like video game retailer GameStop.
In order to attract its own retail investors, Reddit has announced that eligible users and moderators on the platform, as well as certain board members, friends and family of the company's employees and directors, will be able to participate in the IPO, as well as eight of the total shares offered through the IPO. % reserved.
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Reddit had an average of 73.1 million daily active “uniques” (users who use the platform at least once a day) over the past three months of 2023, according to regulatory filings.
Reuters contributed to this report.
