The company, along with some of its existing investors, is targeting a sale of about 22m shares, priced between $31 and $34 each, to raise up to $748m. The IPO, a major litmus test of investor appetite for new listings, will come more than two years after the company began preparations to go public.
So far this year, the IPO market recovery has been uneven. The targeted valuation, on a fully diluted basis, is less than the $10bn Reddit was valued at after a fundraising in 2021.
After its launch in 2005, Reddit became one of the cornerstones of social media culture. Its iconic logo — featuring an alien with an orange background — is one of the most recognised symbols on the internet. Its 100,000 online forums, dubbed “subreddits”, allow conversations on topics ranging from “the sublime to the ridiculous, the trivial to the existential, the comic to the serious”, according to co-founder Steve Huffman.
Mr Huffman himself turned to one of the subreddits for help to quit drinking, he wrote in his letter. Former US president Barack Obama also did an “AMA” (“ask me anything”), internet lingo for an interview, with the site’s users in 2012.
The company’s influential communities are best known for the “meme-stock” saga of 2021, when several retail investors collaborated on Reddit’s “wallstreetbets” forum to buy shares of highly shorted companies such as video game retailer GameStop. The episode torpedoed hedge funds that had bet against those stocks, and made retail traders a force to reckon with. It was also featured in a 2023 film starring Seth Rogen.
To tap into the retail base, Reddit has reserved 8% of the total shares on offer for eligible users and moderators on its platform, certain board members, and friends and family members of its employees.
Such buyers will not be under a lock-up period and could choose to sell their shares on the first day of trading.
“This is a unique IPO and what happens with it is going to be partly driven by the buzz on the platform,” said Reena Aggarwal, director of the Georgetown University Psaros Center for Financial Markets and Policy.
Weak debuts from Arm Holdings, Instacart, and Birkenstock in 2023 had chilled hopes of a recovery in IPOs. Since the IPO, Arm’s stock has doubled. Instacart has underperformed the S&P 500. Birkenstock is about even with the index.
]]>other people on reddit at the time were talking about the fbi being involved or something, but tbh i dont trust what anyone on reddit says at all.
does anyone know what happened there? what were ur interpretation on what happened?
to me it seemed like there was a conflict between people who wanted to abolish work, and people who simply were complaining about poor working conditions but idk
]]>We wouldn't want to just end up boosting their stocks, afterall.
]]>Would you be interested in brigading the event if the rumor comes true? We could probably coordinate to place some pixels to the canvas creating a Raddle frog and promoting our site. Or maybe not.
I personally would probably just vandalize any Lemmy art and help some 2hu art
EDIT: 23rd, not 23th, silly me
]]>I don't know how this activity would be reported back to Reddit, but it may be a way to see posts on the site without contributing to traffic measures.
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