Latest Reddit IPO Updates: Targets a valuation of $6.5 billion
Reddit IPO plans are becoming a part of the conversation with its recent S-I filing. On Monday Reddit released a new S-1 filing, showing that the company and shareholders are planning to sell the shares at a range of $31 to $34 per share.
In February, Reddit said about its plan to go public on the New York Stock Exchange and trade under the ticker symbol “RDDT.” With its upcoming IPO, the company is targeting a valuation of $6.5 billion by selling around 22 million shares of the company. Around 15.3 million will be sold out by the company including the CEO Steve Huffman and the rest by the investors.
Reddit is an American social media forum website that was launched in 2005 by American entrepreneurs Steve Huffman and Alexis Ohanian. The company basically consists of millions of individuals called “Subreddits”. In recent times Reddit has become an important and essential part of the internet for breaking news.
Also read – A lot of Redditors hate the Reddit IPO
In their recent filing, Reddit said -” We are also in the early stages of monetizing our emerging opportunity in data licensing by allowing third parties to access, search, and analyze data on our platform. In January 2024, we entered into certain data licensing arrangements with an aggregate contract value of $203.0 million and terms ranging from two to three years. We expect a minimum of $66.4 million of revenue to be recognized during the year ending December 31, 2024, and the remaining thereafter.”
Reddit has also kept around 1.76 million shares for its early users those are registered on Reddit before January. The Redditors can purchase these stocks and later they can sell them in the open market without being subject to a lock-up- period. The company warned the Redditors in Reddit s-1 filing who participate in its IPO “could result in increased volatility in the market price”.
“Advertising is our first business, and advertisers of all sizes have discovered that Reddit is a great place to find high-intent customers that they aren’t able to reach elsewhere,” Huffman said. “Advertising on Reddit is rapidly evolving, and we are still in the early phases of growing this business.”- He added in a signed letter included with the S-1 filing.
Redditors reaction to Reddit s-1 filing:
However, a lot of Redditors hate the upcoming IPO and few of them are even saying “Honestly don’t believe it will be successful,” Reddit User. “Too many social media companies chasing a few dollars. They already throw all the ads at me and I will not pay them to disable it. I never clicked on an ad on purpose.”
As per Dan M.” The share program “seems like a gimmick to me honestly,” who also received the offer to buy the shares. He also says “While the rest of the internet is all a giant mess, Reddit still feels like a place where you can learn things and have fun,”.
