Reddit Prices Its IPO at $34 Per Share, Valuing It At $6.4 Billion

Reddit priced its initial public offering (IPO) at $34 per share Wednesday evening and is set to begin trading Thursday on the New York Stock Exchange (NYSE) under the “RDDT” ticker.

This price band values Reddit at about $6.4 billion. Reuters cited sources familiar with the deal who said the offering was around four to five times oversubscribed, with the company set to easily raise its targeted $748 million from the public market.

Reddit filed the paperwork for its IPO about a month ago, after first pursuing a listing in 2021, when management was said to be seeking a $15 billion valuation. A subsequent sell-off in tech stocks and a softening in the IPO market led to the company to revise those expectations downwards.

In its most recent filing with the Securities and Exchange Commission (SEC), the company highlighted investments in cryptocurrency and noted OpenAI CEO Sam Altman was an investor in the firm, with 9.2% of the voting rights as of Feb 22.

The filing also revealed 2023 revenue of $804 million, up 21% over the year, but the company has yet to book a profit in its nearly 20-year history. Some hope that will change with the company’s CEO recently looking to leverage the huge amounts of data on the platform to train generative artificial intelligence models. The company recently signed a data-sharing deal valued at $60 million a year with Alphabet’s Google (GOOG) (GOOGL).

However, there are also challenges ahead for Reddit, which disclosed an investigation by the Federal Trade Commission (FTC) and a patent dispute with Nokia Corp. (NOK) in its recent regulatory filings.

Update—March 20, 2024: This article has been updated with information from Reddit’s IPO pricing press release.