Reddit prices IPO at US$34 per share – 03/20/2024 – Tech

The social network Reddit priced its initial public offering (IPO) this Wednesday (20) at the top of the targeted range, from US$31 to US$34 per share, and raised US$748 million, giving a boost to the weakened IPO market for technology companies.

The 22 million shares offered by the company and its existing shareholders were set at US$34 per share in the transaction, giving the Reddit platform a market value of around US$6.4 billion.

Excluding shares sold by existing shareholders, Reddit raised gross funds of $519.4 million.

Reuters reported earlier on Wednesday that Reddit and its investors were pointing to the possibility of pricing the IPO at or above the top of the indicated range.

The pricing of the IPO at the top of the range justifies the company’s decision to reduce its expectations about market value, after being valued at US$10 billion in a private fundraising round in 2021.

The successful offerings of Reddit and the company Astera Labs could boost the technology IPO market, after two years of very moderate activity.

This year, the U.S. stock market debuts of other big names such as KKR-backed BrightSpring and sportswear brand Amer Sports have received a lukewarm reception from investors.