Reddit, the main internet forum portal, plans its IPO in Wall Street with a share offering that would allow it to raise up to $748 million and reach a valuation of $6.4 billion, as indicated this Monday to the United States stock market regulator.
In a document delivered to the Securities and Market Commission (SEC, in English), Reddit indicates that it will offer 22 million shares at a price between $31 and $34 when it goes public, an event that could occur next week, according to specialized media.
These actions include some 15.3 million ‘common’ securities known as Class A, among which almost 2 million will be reserved for users and moderators of the forums, and 6.7 million securities that will be sold by the company’s executive positions.
Reddit’s debut on Wall Street attracts the attention of the markets, since it will be the largest IPO of a technology company in 2024 and the first IPO of a social network since 2019, when Pinterest did it.
In 2021, the company conveyed to the SEC its interest in going public after signing its first financial director, but the process was put on hold until now.
That same year, Reddit had great relevance on Wall Street, since numerous users coordinated from the subforum ‘WallStreetBets’ the shares of a company in decline skyrocketed, GameStopforcing large investment funds to assume billions in losses.
After almost two decades of existence, Reddit has grown to 73 million active users in the last part of 2023, but has not yet recorded a profitable year, and had losses of almost $91 million in 2023 despite increasing its turnover by 21% year-on-year, up to $804 million.
The platform was created in San Francisco in 2005, a place and time of great fertility for social networks, by two university colleagues, Steve Huffman y Alexis Ohanianwhich shortly after was sold to the publishing group Condé Nasttoday one of its main investors.
Ohanian, famous for having started a family with the tennis star Serena Williamsleft Reddit in 2020, while Huffman has been CEO since 2015. EFE (I)
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