Social media company Reddit said that it’s planning to raise $750 million and targeting an almost $6.5 billion valuation in it’s IPO that’s likely to happen next week. According to a filing released Monday, the company and its existing shareholders will sell around 22 million shares priced at between $31 to $34 each.
Reddit will offer approximately 1.76 million shares for certain users of its website. The social media company said that these users won’t be subject to a lock-up period that normally stops investors from selling shares for six months after the IPO, meaning the users can sell them on the open market immediately.
Reddit, the first social media company to go public since Pinterest in 2019, filed a draft of its public offering with the SEC in 2021 and following up with a prospectus in February of this year.
The company recorded annual sales of $804 million in 2023, an increase from $666.7 million in 2022. It also showed a net loss of $90.8 million last year, a decrease from $158.6 million in 2022.
