Reddit, the popular online community platform, is poised to make its stock market debut with a valuation goal of $6.5 billion. This figure, as informed by insiders, marks a conservative estimate compared to the company’s previous $10 billion valuation in 2021.
The company is preparing to offer shares priced between $31 and $34, aiming to strike a balance in a market that has shown recent volatility. A portion of the shares will be newly issued, while others will come from existing stakeholders, including investors and company employees.
Reddit’s journey to the public markets comes after nearly two decades of operation, known for its vibrant user-generated content and the iconic upvote/downvote system. Despite its strong community, Reddit has experienced slower commercial growth relative to social media giants like Facebook and Twitter, now rebranded as X.
The platform, which last month reported a narrowed net loss of $90.8 million and a revenue increase of 21% in 2023, is navigating through a transformative phase. Its upcoming IPO represents a critical milestone, testing investor appetite for a company that remains a staple in the social media landscape but is still finding its footing in monetization.
