MILANO – Sparkling debut for Reddit on the New York Stock Exchange. The stock closed up 48% on Wall Street on its first day of trading. The social network closed its first session at 50.44 dollars per share, well above the price set in the initial public offering which was 34 dollars.
The social network that came to the fore during the lockdown, because waves of stock market purchases towards Meme stocks were organized on its chats (GameStop was the most famous) capable of overturning even the forecasts of large hedge funds), thus cashes in 748 million, of which 519 remain in the company while the rest goes into the pocket of existing shareholders who have liquidated. There are also 2 million securities that have been reserved at IPO prices for historical users and moderators: at the end of the day this package of securities was worth an extra 29 million dollars.
The long hibernation for the IPO market is coming to an end
Yet there has been some criticism on social media: groups of new shareholders have spread, ready to short the stock because they are against the IPO.
The 34 dollars indicated at the time of the listing were already on the high side of the price range, a choice justified by having received demand for more than 10 times the supply of securities. The valuation of the San Francisco company thus reaches 9 billionin any case below the levels it had reached in some phases of the previous financing rounds, before the growth in rates and the end of the pandemic effect knocked down all tech prices somewhat.
Telegram is studying an IPO on Wall Street and is valued at 30 billion dollars
of Sarah Bennewitz
However, the operation was not only evaluating the appetite for the Reddit stock itself. The IPO market has come from two particularly complicated years and the euphoria of investors, symbolized by the S&P500 which has gained 27% from the lows of last October, is definitely reinvigorating the link between companies and capital markets. According to Dealogic data reported by Financial Timessince the beginning of the year the companies have placed on the market shares for 7.1 billion dollars, three digits and more compared to the amount at the same point of the season in the two years placed.
A recovery trend which, together with the excellent performance of Reddit, is also reflected in society Astera Labs which works on AI and whose shares have gained 78% since its listing on Tuesday. On the launch pad indicated by Bloomberg there are now candidates such as the data security startup Rubrik which sees Microsoft among the sponsors and the healthcare payments company Waystar Technologies.
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– 2024-05-02 20:57:21
