Reddit’s initial public offering could be as much as five times oversubscribed, which makes it more likely that the company will achieve the $6.5 billion valuation it’s seeking, according to sources familiar with the situation.
Oversubscription doesn’t ensure that an IPO will perform well in its stock market debut, but it does mean that the social media company will in a position to reach it’s targeted price of $31 to $34 a share, the sources added.
Reddit previously hedged it value expectations after being valued in a $10 billion private fundraising round three years ago. Currently, the company’s IPO is hoping to raise at least $748 million.
Although Reddit has more than 73 million daily active unique users, according to a regulatory filing in 2023, it has lost money each year since launching in 2005.
