Reddit Looking To Raise Almost $750-M In IPO

Social media company Reddit is looking to raise almost $750 million in an initial public offering (IPO) of its common stock, as reported by Michelle Chapman for the Associated Press (AP).

At the midpoint of that range, Reddit would raise about $451 million, and it plans to use proceeds for general corporate purposes, taxes, and possibly acquisitions. I Image: Reddit

The company said in a regulatory filing that the IPO will include 22 million shares of Class A common stock. Reddit is offering approximately 15.3 million shares, while the selling stockholders are offering about 6.7 million shares.

Reddit anticipates that the IPO will be priced between $31 and $34 per share.

At the midpoint of that range, Reddit would raise about $451 million, and it plans to use proceeds for general corporate purposes, taxes, and possibly acquisitions.

The San Francisco-based company said that the underwriters have reserved, at its request, up to 1.76 million shares for sale at the IPO price through a directed share program to eligible users and members of its platform, certain board members, and friends and family of certain employees and directors.

The underwriters were also given the right to buy up to an additional 3.3 million shares to cover any overallotments.

Reddit, which began in 2005, had more than 76 million people, on average, visit the platform every day in December, according to a letter from co-founder Steve Huffman that was included in the filing. It has more than 100 million unique subreddits.

WEEKLY FEATURE : Jose Mari Chan And The Christmas Anthem