Social media site Reddit is hoping to raise $750 million U.S. through its upcoming initial public offering (IPO).
The company is looking to be valued at $6.50 billion U.S. ahead of its stock market debut on the New York Stock Exchange March 21.
In a new regulatory filing, Reddit said that it plans to sell 22 million shares at a price range of $31 U.S. to $34 U.S. per share.
In an unusual move, Reddit has set aside 1.76 million shares for certain people and institutions, known as “Redditors,” who want to participate in the IPO.
The Redditors will be able to purchase the company’s shares at the IPO price and then sell them immediately when Reddit goes public as they won’t be subject to a lock-up period, which typically prevents investors who get in on the IPO from selling shares for the first six months.
The company warned in the regulatory filing that the Redditor situation “could result in increased volatility in the market price” of the company’s stock.
Wall Street is closely watching Reddit’s IPO, which will be this year’s first major technology stock debut and the first social media IPO since Pinterest (PINS) went public in 2019.
Reddit had previously delayed its IPO several times due to the pandemic and 2022 bear market. At one point, the company was given a private market valuation of $10 billion U.S.
In its IPO prospectus, Reddit noted that it had annual sales in 2023 of $804 million U.S., which was a 20% year-over-year increase from $666.7 million U.S. in 2022.
However, Reddit is not yet profitable and recorded a net loss of $90.8 million U.S. in 2023.
Reddit plans to trade under the ticker symbol “RDDT",
