NEW YORK: Reddit said Wednesday it pegged the value at the high end of its expected diversity in front of its board on the New York Stock Exchange, a sign of investor enthusiasm.
Reddit, which will debut Thursday under the ticker symbol “RDDT,” will go public at $34 per share, the company said in a statement, valuing the platform at about $6. 4 billion.
The access to Reddit comes as the tech sector has noticed a sharp slowdown in IPOs since the U. S. Federal Reserve began raising interest rates.
With minimal simple investment, Silicon Valley is seeing a dearth of corporations willing to take the plunge to go public, with Pinterest being the last social media company to do so in 2019.
San Francisco-based Reddit filed its first IPO in 2021 as the market flourished thanks to the Covid-related boom in tech expansion, but the attempt stalled as the economy cooled.
Reddit, unlike Facebook or the old Twitter X, is divided into around 100,000 topical discussion forums called subreddits, making it more specialized and a position where posts are less likely to go viral.
However, Reddit has 73 million average users and 267 million users per month, mostly in the United States, according to its filing with U. S. regulators.
Subreddit content is usually moderated independently, and the site requires fundamental popularity that users will need to live up to, making the site less monitored or centralized than Facebook or TikTok.
In its filing earlier this month, the company said it would factor 15. 2 million shares priced between $31 million and $34.
Taking a cue from the likes of Airbnb and Rivian, Reddit has reserved about 8 percent of indexed shares in the stock market for moderators and core users, known as “Republishers. “
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