Reddit's IPO: What to know about valuation, timing
Reddit logo displayed on a phone screen and Reddit website logo displayed on a screen in the background are seen in this illustration photo taken in Krakow, Poland on November 5, 2022. (Photo by Jakub Porzycki/NurPhoto via Getty Images)
Reddit is attempting to raise almost $750 million in an initial public offering of its common stock.
In a regulatory filing, the social news aggregation and forum network stated that the IPO will include 22 million shares of Class A common stock.
The Associated Press reported Reddit is offering approximately 15.3 million shares, while the selling stockholders are offering about 6.7 million shares.
RELATED: Reddit files to go public, first social media IPO in years
Reddit expects the IPO will range in price between $31 and $34 per share. At the midpoint of that range, the California-based company would raise about $451 million, and it plans to use the revenue for corporate purposes, taxes and possibly acquisitions.
Underwriters have reserved, at Reddit's request, about 1.76 million shares for sale at the IPO price through a share program for eligible users and members of its social media platform, certain board members and friends and family of certain employees and directors.
Citing a letter from co-founder Steve Huffman, the AP noted that Reddit averages over 76 million people visiting its platform daily in December 2023, and it has over 100 million unique subreddits.
RELATED: Reddit co-founder Alexis Ohanian resigns from board
In February, Reddit announced plans for its IPO, with the company reporting a net income of $18.5 million — its first profit in two years — in the October-December quarter on revenue of $249.8 million.
Separately, Reddit previously said it agreed to a deal with Google for roughly $60 million, that allows Google to use posts from Reddit for training its artificial intelligence models and to improve services such as Google Search.
The deal also provides Reddit access to Google AI models for improving its internal site search and other features.
The Associated Press contributed to this report. This story was reported from Washington, D.C.