Reddit raised $748 million in IPO – Kommersant
[ad_1]
The Reddit company, which owns the popular forum of the same name, installed the price of its shares at IPO is $34. Thus, they are trading at the upper limit of the previously announced price corridor of $31–34. During the IPO, $748 million was raised: $519 million was raised by Reddit itself, and another $229 million came from the company’s shareholders who sold their shares. Reddit’s total valuation based on its IPO share price is $6.5 billion. The company’s shares will begin trading on the New York Stock Exchange today, March 21, under the ticker symbol RDDT.
Reddit’s IPO is the first public offering of a major social media company since Pinterest’s 2019 IPO. In general, the number of IPOs and the amounts they raise have fallen sharply in the past two years, so that each relatively large offering attracts the attention of investors. Reddit’s IPO valuation is significantly lower than its last funding round of $10 billion in 2021. Since then, venture capital investment has generally declined. In 2023, Reddit’s revenue grew by 20%, to $804 million. The company ended the year with a loss of $90.8 million, significantly reducing it compared to the previous year ($158.6 million).
[ad_2]
Source link
