Reddit on Monday offered more details of its plan to go public. In a new filing, the company disclosed financial details of its upcoming trading debut on the New York Stock Exchange, including a target valuation north of $6 billion.
San Francisco-based Reddit hopes to raise up to $748 million by offering 22 million shares at a price of 31 to 34, according to an updated SEC filing on Monday. That could set Reddit up at a market capitalization of about $6.4 billion at the high end of its range.
The initial public offering includes 15.3 million in class-A common stock, with the rest from selling shareholders. Reddit also plans to set aside about 8% of shares for Redditors, the term for the platform's users and moderators. Those users will be able to sell at any time, regardless of any lockup period, the Reddit filing said.
Reddit, which plans to trade under RDDT, said it is targeting net proceeds of about $451 million from the IPO. The stock is expected to begin trading later this month.
Reddit IPO: Valuation Compared With Meta, Pinterest And Snap
The 19-year-old Reddit last raised private funding in 2021, at a reported valuation of $10 billion. Reddit's potential market capitalization would place it behind social media peers.
Digital pinboard operator Pinterest has a market capitalization just above $23 billion, while Snapchat parent company Snap has a market cap of $19.7 billion.
Reddit last year had sales of $804 million, compared with $3 billion for Pinterest and $4.6 billion for Snap. Further, Reddit lost about $91 million last year and is yet to turn a profit.
Meanwhile, Facebook-parent Meta towers over other social media stocks. The company has a market capitalization of more than $1.2 trillion and last year recorded more than $135 billion in sales.
