Reddit is aiming for an IPO valuation of up to $6.5 billion, according to sources familiar with the matter, a significant decrease from its previous valuation. The company is considering setting a price range of $31-$34 per share. When approached by Reuters, Reddit declined to comment.
In the IPO, both new shares issued by Reddit and existing shares held by investors and employees will be offered, one source revealed. Previously valued at $10 billion in a 2021 funding round, Reddit had planned to sell around 10% of its shares in the IPO, as reported by Reuters in January.
Renowned for its specialized discussion forums and user-driven voting system, Reddit disclosed a narrowed net loss of $90.8 million and approximately 21% revenue growth in 2023. The platform’s IPO filing was made public last week, marking a significant milestone nearly two decades after its launch. This IPO will be a significant test for Reddit, which has yet to match the commercial success of social media giants like Facebook and Twitter, now rebranded as X.
