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Key Takeaways
- Reddit aims to raise up to $748 million in its upcoming initial public offering, with the company saying it plans to sell 22 million shares for $31 to $34 each, according to a filing with the Securities and Exchange Commission Monday.
- The social media company said that 1,760,000 shares, or 8% of shares offered, will be reserved for its users.
- Reddit previously announced its user share program is set to come in six phased priority tiers based on “karma,” the platform’s metric of a user’s community contributions.
- The company filed for IPO to trade under the symbol “RDDT” on the New York Stock Exchange at the end of February.
Reddit aims to raise up to $748 million in its upcoming initial public offering (IPO), according to a filing with the Securities and Exchange Commission (SEC) Monday.
The social media company said it plans to sell 22 million shares for $31 to $34 each, with 1,760,000 shares, or 8% of shares offered, reserved for its users and moderators.
Reddit previously announced its user share program is set to come in six phased priority tiers, with each eligible participant assigned a tier “based on that participant’s contributions to Reddit” measured by Redditors’ karma, the metric of a user’s community contributions to the platform.
The company had filed for its IPO to trade on the New York Stock Exchange (NYSE) under the symbol “RDDT” at the end of February.
The IPO filing showed that Reddit’s 2023 revenue was $804 million, representing 21% growth from 2022’s $666.7 million. The company said its gross margin for 2023 was 86%, up from 84% in 2022. Its net loss of $90.8 million in 2023 narrowed from a loss of $158.6 million the previous year.
Reddit reported 73.1 million daily active users in the fourth quarter of 2023, up 27% year over year.
Sam Altman, CEO and co-founder of ChatGPT maker OpenAI, is also among those holding more than 5% of its capital stock after he bought more than a million shares at an aggregate purchase price of more than $60 million, Reddit disclosed.