Nineteen years after its debut, is now a public company. It was listed on the New York Stock Exchange for the first time on Thursday as RDDT, with mascot Snoo to ring the opening bell.
The company had aimed to sell 15.3 million shares at $34 to raise $519.4 million. Shareholders planned to sell 6.7 million shares in the IPO, worth a total of $228.6 million (Reddit itself will not see any of this money). The IPO price values Reddit at just under $6.5 billion.
The underwriters of the sale also have the option to purchase 3.3 million shares at the IPO price within the next 30 days. So, if the stock goes up in the next few weeks, the underwriters can buy the stock relatively cheaply. If all of these are sold, Reddit will earn another $112.2 million. Another interesting aspect of Reddit’s public offering is that it invites long-term users in good standing to participate. over the past few weeks.
It’s been a long road for Reddit to go public, and it’s doing so long after many of its peers (the last big social media IPO was Pinterest in 2019). Conde Nast bought Reddit in 2006, a year after the platform launched, and spun it off as an independent subsidiary in 2011. Reddit first in 2021.
The company has faced many controversies to resolve during its existence. Users last year against the company’s decision to start charging for API access bound to the platform. became private and/or did not allow users to post for a while. Indeed, in Noting the importance of its users, Reddit says that “if employment were to decline, our business, results of operations, financial condition and prospects would be harmed.”
Most recently, Reddit is said to be a year to train the latter’s AI models on user-generated content. Reddit then said that the Federal Trade Commission .
