Everything is ready for the big debut on Wall Street. Reddit, a social news, entertainment and forum platform, debuts on the stock exchange under the symbol "Rddt", with a market valuation of $6,4 billion. THE'initial public offering (IPO) was set at $34 per share, reaching the maximum value expected by investors.
Reddit IPO: up to 25 million shares on sale
The platform plans to raise $748 million, selling 22 million shares and giving underwriters an option to a further 3,3 million shares. Although the valuation is lower than in 2021 when it was valued at $10 billion in a private financing round, the Reddit IPO saw strong demand with oversubscriptions four to five times higher, indicating a potential success in its stock market debut .
Reddit: who are the major shareholders
Reddit has as its largest shareholder Advance Publications, the parent company of Condé Nast, known for magazines such as the New Yorker, Vogue and Wired. Other notable names in the company include the CEO of OpenAI, Sam altman, which owned about 8,7% of the social media company through affiliated entities before the IPO, positioning it as the third-largest shareholder after Chinese firm Tencent.
What is Reddit
Reddit is a social media platform that allows users to share and discuss a wide range of topics through posts and comments. Founded in 2005 by Steve Huffman and Alexis Ohanian, Reddit has become one of the largest online communities in the world. Its structure is based on “subreddit“, each dedicated to a specific topic, allowing users to find and participate in discussions about practically anything. Over the years, Reddit has played a significant role in spreading viral content, promoting important discussions, and influencing cultural trends.
Reddit currently records 73 million active unique users every day, and over 100.000 active communities.
