Current:Home > MarketsReddit looking to raise almost $750 million in initial public offering-DB Wealth Institute B2 Expert Reviews
Reddit looking to raise almost $750 million in initial public offering
View Date:2024-12-24 08:28:59
Social media company Reddit is looking to raise almost $750 million in an initial public offering of its common stock.
The company said in a regulatory filing that the IPO will include 22 million shares of Class A common stock. Reddit is offering approximately 15.3 million shares, while the selling stockholders are offering about 6.7 million shares.
Reddit anticipates that the IPO will be priced between $31 and $34 per share. At the midpoint of that range Reddit would raise about $451 million, and it plans to use proceeds for general corporate purposes, taxes and possibly acquisitions.
The San Francisco-based company said that the underwriters have reserved, at its request, up to 1.76 million shares for sale at the IPO price through a directed share program to eligible users and members of its platform, certain board members and friends and family of certain employees and directors.
The underwriters were also given the right to buy up to an additional 3.3 million shares to cover any overallotments.
Reddit, which began in 2005, had more than 76 million people, on average, visit the platform every day in December, according to a letter from co-founder Steve Huffman that was included in the filing. It has more than 100 million unique subreddits.
Reddit announced plans for its IPO last month. In documents filed with the Securities and Exchange Commission, Reddit said it reported net income of $18.5 million — its first profit in two years — in the October-December quarter on revenue of $249.8 million, primarily through advertising. The company also said at the time that it struck a deal with Google, valued at approximately $60 million, that allows the search giant to use posts from the online discussion site for training its artificial intelligence models and to improve services such as Google Search. The agreement will also give Reddit access to Google AI models for improving its internal site search and other features.
Reddit’s shares are expected to be listed on the New York Stock Exchange under the “RDDT” ticker symbol.
veryGood! (963)
Related
- Horoscopes Today, November 13, 2024
- Pee-wee Herman Actor Paul Reubens' Cause of Death Revealed
- End may be in sight for Phoenix’s historic heat wave of 110-degree plus weather
- The first attack on the Twin Towers: A bombing rocked the World Trade Center 30 years ago
- Donna Kelce Includes Sweet Nod to Taylor Swift During Today Appearance With Craig Melvin
- Lithuania to issue special passports to Belarus citizens staying legally in the Baltic country
- Escaped murderer slips out of search area, changes appearance and tries to contact former co-workers
- Historic fires and floods are wreaking havoc in insurance markets: 5 Things podcast
- Bull doge! Dogecoin soars as Trump announces a government efficiency group nicknamed DOGE
- Misery Index Week 2: Alabama has real problems, as beatdown by Texas revealed
Ranking
- The Best Corduroy Pants Deals from J.Crew Outlet, Old Navy, Levi’s & More, Starting at $26
- Some authors will need to tell Amazon if their book used AI material
- Are almonds good for you? Learn more about this nutrient-dense snack.
- Moroccan soldiers and aid teams battle to reach remote, quake-hit towns as toll rises past 2,400
- Today's Craig Melvin Replacing Hoda Kotb: Everything to Know About the Beloved Anchor
- Oprah Winfrey: Envy is the great destroyer of happiness
- A US Navy veteran got unexpected help while jailed in Iran. Once released, he repaid the favor
- What's going on with Cash App and Square? Payment services back up after reported outages
Recommendation
-
'Heretic' spoilers! Hugh Grant spills on his horror villain's fears and fate
-
Montana park partially closed as authorities search for grizzly bear that mauled hunter
-
Texas surges higher and Alabama tumbles as Georgia holds No. 1 in the US LBM Coaches Poll
-
Dolphins' Tyreek Hill after 215-yard game vs. Chargers: 'I feel like nobody can guard me'
-
Manhattan rooftop fire sends plumes of dark smoke into skyline
-
Guns n’ Roses forced to delay St. Louis concert after illness 30 years after 'Riverport Riot'
-
Guns n’ Roses forced to delay St. Louis concert after illness 30 years after 'Riverport Riot'
-
Oprah Winfrey: Envy is the great destroyer of happiness