Mar 20, 2024 - Business

Reddit raises $748 million in its IPO, with stock to list Thursday

Reddit

Photo Illustration by Jonathan Raa/NurPhoto via Getty Images

Reddit raised $748 million in its initial public offering on Wednesday, meeting the top of its expected price range.

Why it matters: This is the first social media IPO since Pinterest went public in 2019, and offered some of Reddit's most active users a chance to become shareholders.

  • It also gives Reddit a bigger bankroll to grow its business, which finally turned a profit in the fourth quarter of last year. This would include acquisitions and a new revenue stream whereby Reddit sells user data to AI companies.
  • The stock will begin trading Thursday on the New York Stock Exchange under ticker symbol "RDDT."

Zoom in: San Francisco-based Reddit priced the IPO at $34 share, right at the high point of its $31-$34 per share offering range. That would give it an initial market cap of around $5.4 billion.

  • It first filed to go public in 2021, when Fidelity and others gave it a private market value of around $10 billion.

The bottom line: Reddit will be under elevated scrutiny, including from any of its own mods who bought it at the IPO price.

Go deeper: Reddit's role in the AI battle

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