Zhitong Finance and Economics learned that according to people familiar with the matter, the estimated IPO of the ** platform Reddit is up to $6.5 billion, far lower than the valuation a few years ago. According to the person, the social company plans to IPO in the $31-34 per share range, according to which Reddit's fully diluted valuation is about $6 billion to $6.5 billion. Reddit did not comment.
It is understood that part of the shares sold in the IPO will be newly issued by Reddit, and the other part will be existing shares held by its investors and employees.
Previously, in a round of funding in 2021, Reddit reached a valuation of $10 billion. It was reported in January that the company had been looking to sell about 10% of its stake in an IPO**.
According to Reddit's filing with the U.S. Securities and Exchange Commission, Morgan Stanley, Goldman Sachs, JPMorgan Chase & Co. and Bank of America are the lead banks. Issuance details such as the size and timing of the IPO are subject to change, people familiar with the matter said. Representatives of Morgan Stanley, Goldman Sachs, JPMorgan Chase & Co. and Bank of America declined to comment.
It is worth mentioning that Reddit's IPO documents were made public last week, nearly two decades after Reddit was founded. This will be a significant test, as the platform still lags behind social contemporaries like Facebook and Twitter in terms of commercial success.
It is reported that Reddit is known for its niche discussion groups and the "likes" or "dislikes" that users "like" or "like" on content posted by other members. Last month, the company disclosed that its net loss narrowed to $90.8 million, with revenue growth of about 21% in 2023.