Reddit, the popular online platform, is poised to make its stock market debut with an initial public offering (IPO) seeking a valuation of up to $6.5 billion, sources familiar with the matter told Reuters on Friday with. This rating represents a significant decrease from the previous value.
According to the sources, Reddit is considering setting a price range of $31 to $34 per share.
Insiders revealed that the IPO will include a mix of newly issued Reddit shares as well as existing shares held by investors and employees.
The company's valuation was previously estimated at $10 billion during a funding round in 2021. According to reports in January, Reddit planned to sell about 10% of its shares during the IPO.
Reddit, known for its specialized discussion forums and user-driven content curation system with “up” and “down” votes, recently announced a narrower net loss of $90.8 million in 2023, on revenue growth of about 21%.
Reddit's public filing for its IPO was released last week, marking a significant milestone nearly two decades after its launch. The IPO is seen as a crucial test for the platform, which continues to lag behind social media giants such as Facebook and Twitter, now renamed X.
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