(Bloomberg) — Reddit Inc. is seeking a valuation of up to $6.5 billion in its initial public offering, according to people familiar with the matter.
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The social media company plans to target a price range of $31 to $34 per share in its initial stock sale, the people said, asking not to be identified because the information is private.
At that price range, Reddit would have a fully diluted value of about $6 billion to $6.5 billion, the people said. The company plans to market the shares to potential investors on March 11, they added.
Reddit also plans to allow some employees to sell shares as part of the IPO, according to the people. The company had already announced that it would hold shares in the IPO for purchase by users and moderators of its platform.
Details of the offering, including size and timing, could change, the people added. The IPO is being led by Morgan Stanley, Goldman Sachs Group Inc., JPMorgan Chase & Co. and Bank of America Corp. according to filings with the U.S. Securities and Exchange Commission.
Representatives of these banks declined to comment. Some details, including the price range and valuation, were previously reported by The Wall Street Journal.
San Francisco-based Reddit is a high-profile member of this year's club of new and future public companies after two years of slumping IPOs on U.S. exchanges.
The largest of those IPOs was Amer Sports Inc.'s $1.57 billion offering in January. Current IPO candidates include Microsoft Corp. backed data security startup Rubrik Inc. and health payments company Waystar Technologies Inc.
As Bloomberg News reported in January, Reddit was weighing feedback from early meetings with potential IPO investors that the company should consider a valuation of at least $5 billion. The company was seeking a valuation in the mid-single-digit billion range, people familiar with the matter said at the time.
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The valuations considered would represent a significant decline from valuations during the pandemic's tech heyday. In 2021, Reddit raised $10 billion in funding, and Bloomberg News reported the following year that the company could potentially have been valued at up to $15 billion in an IPO.
The company plans to trade its shares on the New York Stock Exchange under the symbol RDDT.
(Updates with planned start date in third paragraph.)
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