Reddit IPO: price, listing date, and which Redditors are getting the stock

Reddit (RDDT) is set to go public soon, and is so far one of the most anticipated initial public offerings (IPOs) of 2024. The social media company, led by CEO Steve Huffman, is seeking a $6.5 billion valuation and is now aiming To raise up to $748 million in the company’s public offering.

Planning for March 21the offering is imminent, and Reddit said last week that it would sell 22 million shares at the expected price $32.50 per share To help reach the $748 million mentioned above. About 1.76 million shares of stock have been sequestered for Redditors – meaning they will have the opportunity to buy separate shares at the IPO price and can sell them when the IPO occurs without delay. A mandatory six-month holding period is typical for early investors after a stock debuts.

These quarantined posts are mostly for Reddit account holders created before January 1, 2024, so if you’re new to Reddit, you won’t be able to participate in this. The share purchase offer applies to a select group of users, moderators and then “friends and family of various directors and staff.” According to Yahoo Finance.

Back in February, selected users were given invitations to the IPO with participants selected based on their level of activity as forum moderators on the platform, or their “karma” scores, which reflect the perceived value of user contributions and serve as shorthand measures of an individual’s standing within the community. Reddit users who did not receive an invitation to register in advance were given the opportunity to buy shares in the IPO from March 1-5. If the program reaches capacity before March 5, Reddit will start a waiting list.

Reddit’s IPO has been on the cards since the company first filed confidentially in 2021. It’s no surprise that Redditors hate this move. Most users seem to feel that the site is actually suffering from Reddit trying to monetize the platform more It hasn’t made a profit in 20 years. This includes, most notably, changes to its terms of service in 2023, specifically to its API, which forced the developers of the very popular third-party Reddit app to shut it down. Then there’s the $60 million content licensing deal with Google that allows its AI to be trained on location data. Additionally, Reddit removed the option for users to opt out of personalized ads.

The relationship between Reddit and its free workforce of volunteer moderators is already in a precarious place, especially after several of them were removed from their subreddits after protesting the company’s API changes. Thus, Reddit allowing moderators to go public early can be seen as an attempt to “cheer up” those who feel offended.

Many users are excited about grabbing shares Not overwhelming, but. “They have failed to turn a profit as one of the world’s most popular websites for decades, and their only way to turn a profit now is to sell access to previously unprofitable defamation sites to hackers who will feed them to their AI.” DPSnacks user wrote on r/investing Subreddit.