ALBAWABA – Social media platform Reddit is going through with its initial public offering with a price share from the top of its targeted $31 to $34 per share range, selling 22 million shares according to Reuters, valuating the company at $6.4 billion and marking the biggest social media IPO seen in years.
After spending the last two weeks assessing investor interest for the shares, Reddit's investment bankers established a target range for the stock price between $31 and $34 per share, and ultimately revealing the price point late of $34 on Wednesday, as reported by the Guardian, in hopes to bring $748 million in investments.
Despite that since its launch in 2005, Reddit has reported a financial loss every year, including a $90.8 million loss last year, the platform’s IPO filing has disclosed having over a 1 billion posts and more than 100,000 active subreddits hosting 267 million weekly average users.
Reddit is set to trade on the New York Stock Exchange with the ticker symbol “RDDT” and total value of $6.4 billion, a downturn from a 2021 private funding round evaluation, which earlier put the company at a $10 billion value point.
Earlier last month, Bloomberg reported that Reddit has signed a $60 million deal with an unnamed Artificial Intelligence company that allows it to access more than 10 years of user-generated data to train its AI models, the company in question is believed to be Google.
A small amount of the company’s shares was reserved to some of its users with no obligation, mainly the moderators of subreddits who manage a critical part of the platform with no pay, causing a concern between Reddit executives and investors over the potential that these users might sell-off of their shares to negatively manipulate stock price.
