Reddit inventory begins buying and selling as IPO kicks off

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The Reddit brand is displayed on the display of an iPhone.

Picture: Justin Sullivan (Getty Pictures)

Reddit inventory was set to start buying and selling on the general public market Thursday because the firm kicks off its highly anticipated initial public offering, the first time a social media company has gone public since Pinterest in 2019. Reddit priced its IPO at $34 per share Wednesday night, valuing the corporate at $6.4 billion.

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That pricing was in keeping with expectations, and on the highest finish of the range the company had set earlier, of $31 to $34 per share. Buying and selling was set to start Thursday morning on the New York Inventory Change.

Reddit’s IPO has been in the works for years, with the corporate hiring a CFO in preparation to go public in 2021. However the platform confronted hurdles as hackers breached its network in February 2023, and later that yr, Redditors protested new API pricing.

The social media firm and its shareholders are looking to raise almost $748 million. Assembly that purpose — or promoting 22 million shares for $34 — would give the corporate a market worth of $6.5 billion. That will nonetheless be quite a bit lower than its earlier valuation of $10 billion in 2021.

Buyers, Redditors, and a few analysts have been skeptical about how well Reddit stock will perform. On the identical time, some indicators level to the potential for giant beneficial properties.

This can be a growing story and might be up to date.