Reddit says stock launch could raise around $750 million

The initial public offering (IPO), of online platform Reddit, could be worth around 750 million dollars, with 22 million shares to be offered, the San Francisco-based company said on Monday.

Reddit had set the issue price range at 31 dollars to 34 dollars, Around eight per cent of the shares going public would be reserved for particularly active users.

They had no holding periods, as was often the case for other investors, meaning they could sell their shares from day one.

Reddit initially filed for the IPO confidentially with the US Securities and Exchange Commission (SEC) around two years ago.

Reddit pushed ahead with the plans a good fortnight ago by publishing an initial share prospectus.

The price range indicated that Reddit could be valued at a total of around 6.4 billion dollars when it launched on the stock exchange.

Reddit allowed users to join online groups according to their interests, In the last quarter, the platform had an average of 73.1 million users per day.

Around half of the users who joined the online groups were based in the U.S.

Reddit increased its turnover last year from 666.7 million dollars to 804 million dollars, reducing its loss from 158.6 million dollars to 90.8 million dollars.

Reddit stated in the usual risk warnings in the prospectus that user participation could lead to major price fluctuations after the IPO.

Users on the platform formed a movement in 2021 that invested in shares of some Wall Street-doubted companies, such as video game retailer Gamestop, causing share prices to rise.