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After months of anticipation, Reddit, Inc. stock is expected to begin trading. today. The company’s IPO will be the most-watched IPO of 2024 so far. It’s the most high-profile public listing for a legacy tech company in years and the first social media giant to go public since Pinterest went public in 2019. Here’s what you need to know:
When will Reddit go public?
Reddit will hold its IPO today, Thursday, March 21, 2024.
What is Reddit Stock Index?
Reddit shares will trade under the stock ticker RDDT.
On which exchange will Reddit stock be traded?
Reddit shares will be traded on the New York Stock Exchange (NYSE).
What is Reddit’s IPO stock price?
RDDT stock will start trading at $34 per share Announce yesterday. This is the top of the expected range that Reddit revealed in a filing with the Securities and Exchange Commission (SEC) earlier this month.
How many Reddit shares will be available?
There will be 22 million shares of RDDT’s Class A common stock available in the company’s initial public offering. Of these, 15,276,527 will be sold by Reddit. However, the remaining 6,723,473 will be sold by the company’s current shareholders.
How much does Reddit raise in its IPO?
At $34 per share, the sale of 22 million shares would raise $748 million. However, Reddit says it will not receive any proceeds from the 6.7 million shares sold by existing shareholders. This means that out of the 15.2 million shares Reddit is selling, the company will raise just over $519 million.
What is a Reddit rating?
At an IPO price of $34 per share, Reddit’s valuation is about $6.5 billion, Notes CNBC. This is less than the $10 billion the company was valued at in 2021.
Why is Reddit’s IPO such a big deal?
For several reasons. First, IPOs have had a tough time over the past few years, indicating weak demand from investors looking to take on more risk by acquiring shares in newly public companies. If Reddit’s IPO is a failure, it indicates that the IPO market may remain depressed for a while. But if successful, Reddit’s IPO could spur other companies to go public sooner rather than later.
Secondly, Reddit’s IPO is also the first of its kind from the social media giant since Pinterest went public in 2019. Since there are only a few giant social media platforms, one of these platforms going public is an event that attracts a lot of interest. Media and investor interest. Facebook went public in 2012, and Twitter went public in 2013 (Elon Musk took the company private in 2022). Snap, which owns Snapchat, went public in 2017.
Investors are hoping Reddit’s IPO will be more like Facebook, whose stock (ticker: META) traded at about $31 a share during its IPO in 2012, but whose shares trade at more than $500 a share today. What investors probably don’t want is Pinterest (PINS), whose shares aren’t up much today compared to their current IPO price, or Snap (SNAP), whose shares today are less than half what they were at their IPO.
How are Reddit users reacting to the IPO?
This is what worries many people. It is not known how Reddit users will react to the IPO. The company burned a lot of bridges with its community members and subreddit moderators after subreddits began protesting API changes last year that saw the company start charging third-party Reddit clients fees that would put many out of business. .
The API changes led several powerful Reddit communities and their moderators to protest by causing their subreddits to be blacked out. Things escalated when Reddit threatened to remove moderators, who are essentially unpaid workers and one of the main reasons Reddit has thrived since its founding in 2006.
Normally, disgruntled users wouldn’t be a problem for a platform IPO. But Reddit is also where the meme stock craze began, highlighting that various Reddit financial and investing sites can have a measurable impact on a company’s stock. If Reddit users hold a grudge, they may negatively impact Reddit’s IPO by using the company’s own platform to rally investors to short the stock.
Is Reddit concerned about its users doing this?
No one knows what Reddit’s board of directors has in mind. However, the company progress A Directed Sharing Program (DSP) to select Reddit users with high karma (points users receive for being helpful on the site) to purchase RDDT shares at the IPO price.
The targeted engagement program ended on March 5, but under the name CNBC Notes, many Reddit users seemed skeptical about participating in it due to concerns about the platform’s finances. Reddit reported a net loss of $90.8 million in 2023; However, that was a smaller loss than the previous year. In 2022, Reddit says it lost $158.6 million.
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