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
