The initial public offering (IPO) of online platform Reddit could be worth around $750 million, with 22 million shares set to be offered, the San Francisco-based company said on Monday.
Reddit set the issue price range at $31 to $34. Around 8% of the shares going public will be reserved for particularly active users. There are no holding periods for them, as is often the case for other investors, meaning that they can sell their shares from day one.
Reddit initially filed for the IPO confidentially with the US Securities and Exchange Commission (SEC) around two years ago - but only pushed ahead with the plans a good a fortnight ago with the publication of an initial share prospectus.
The price range indicates that Reddit could be valued at a total of around $6.4 billion when it launches on the stock exchange.
Reddit allows users to join online groups according to their interests. In the last quarter, the platform had an average of 73.1 million users per day. Around half of these were based in the US.
Reddit increased its turnover last year from $666.7 million to $804 million, while reducing its loss from $158.6 million to $90.8 million.
Reddit already stated in the usual risk warnings in the prospectus that user participation could lead to major price fluctuations after the IPO.
Users on the platform formed a movement in 2021 that invested in shares of some Wall Street-doubted companies, such as video game retailer Gamestop, causing share prices to rise.
