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Update (03/21): Reddit IPO priced at $34/share for $6.5 billion valuation


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Reddit's debut will mark the first major tech initial public offering of the year and the first social media IPO since Pinterest went public in 2019.

 

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Social media company Reddit filed its IPO prospectus with the Securities and Exchange Commission on Thursday after a yearslong run-up. The company plans to trade on the New York Stock Exchange under the ticker symbol “RDDT.”

 

Reddit said it had $804 million in annual sales for 2023, up 20% from the $666.7 million it brought in the previous year, according to the filing. The social networking company’s core business is reliant on online advertising sales stemming from its website and mobile app.

 

The company said it has incurred net losses since its inception. It reported a net loss of $90.8 million for the year ended Dec. 31, 2023, compared to a net loss of $158.6 million the year prior.

 

As of the fourth quarter of 2023, Reddit said that its U.S. average revenue per user, or ARPU, was $5.51, which was down from $5.92 from the previous year. The company’s ARPU was $3.42, which was a 2% year-over-year decline from $3.49.

 

Reddit said that by 2027, the company estimates that its “total addressable market globally from advertising, excluding China and Russia, to be $1.4 trillion.” Currently, Reddit said that advertising market is $1.0 trillion, sans China and Russia.

 

 

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  • Commissar SFLUFAN changed the title to Reddit files with the SEC to list its IPO on the NYSE under the ticker symbol "RDDT"

From CNBC:

 

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The social media company's S-1 filing revealed that some Reddit moderators and other users will be able to participate in the initial public offering.

 

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On Thursday afternoon, the social media company’s S-1 filing revealed that some Reddit moderators and other users would get the opportunity to participate in the offering through a directed share program. This is unusual for companies, as IPOs are bought primarily by institutional investors.

 

“Our users have a deep sense of ownership over the communities they create on Reddit. This sense of ownership often extends to all of Reddit. We see this in our users’ passion for their communities, their desire for Reddit to be as amazing as possible, and in their disapproval when we let them down. We want this sense of ownership to be reflected in real ownership — for our users to be our owners. Becoming a public company makes this possible. With this in mind, we are excited to invite the users and moderators who have contributed to Reddit to buy shares in our IPO, alongside our investors,” the filing said.

 

 

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But the so-called Redditors also earned several mentions in the “Risk Factors” section of the filing. In addition to cautionary statements about the reliance of the business on its users, the IPO participation was highlighted as its own risk.

 

“Redditors’ participation in this offering could result in increased volatility in the market price of our Class A common stock,” the filing said.

 

Many IPO investors, either formally or informally, agree to a lock-up period, which means they will not sell their allocation of shares right after trading begins. But the Reddit users that participate in the IPO will not be subject to a lock-up agreement, the filing said, which could add to volatility in the stock. The filing did not say what percentage of the shares would be allocated through the program.

 

 

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Reddit is seeking a valuation of up to $6.5 billion for its upcoming IPO.

 

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Reddit is seeking a valuation of up to $6.5 billion in its upcoming IPO, according to a person familiar with the matter.

 

The company plans to price its IPO between $31 to $34 a share, the person said. The Wall Street Journal was first to report on the expected range and valuation.

 

Reddit filed to go public in February and plans to trade on the New York Stock Exchange under ticker symbol RDDT.

 

Employees will be allowed to sell Reddit stock during the offering, the source added. Reddit had a private market valuation of $10 billion when it last raised a funding round of $1.3 billion in 2021, according to PitchBook.

 

 

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  • Commissar SFLUFAN changed the title to Update (03/01): Reddit seeking IPO valuation of up to $6.5 billion
  • 3 weeks later...
WWW.CNBC.COM

Reddit priced its IPO on Wednesday at $34 a share, valuing the social media company at about $6.5 billion.

 

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Reddit, the 19-year-old website that hosts millions of online forums, priced its IPO on Wednesday at $34 a share, the top of the expected range.

 

The offering brought in $519 million, according to a press release, and values the company at close to $6.5 billion. Reddit had planned to price the deal at $31 to $34 a share.

 

Reddit’s public market debut on Thursday, under ticker symbol “RDDT,” will be the first for a major social media company since Pinterest’s debut in 2019 and one of the very few venture-backed tech deals of the past two years. Reddit sold 15.28 million shares in the offering, while existing shareholders sold another 6.72 million.

 

The company is taking a haircut from its private market valuation of $10 billion in 2021 at the peak of the tech boom. Soaring inflation and rising interest rates pushed investors out of risky assets in 2022, eventually forcing startups to downsize, slash their valuations and focus on profit over growth.

 

 

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  • Commissar SFLUFAN changed the title to Update (03/21): Reddit IPO priced at $34/share for $6.5 billion valuation

I was eligible for the pre-IPO allocation and took 20 shares at $34, made $418. :santasun:

 

Could have made $20k if I'd maxed the allocation but I viewed it purely as gambling so no way in hell was I putting in $34k.

 

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1 minute ago, Commissar SFLUFAN said:
WWW.CNBC.COM

Get Reddit Inc (RDDT:NYSE) real-time stock quotes, news, price and financial information from CNBC.

 

It was up about 70% at one point today.

 

High was just shy of $57, I sold one at $54 and the rest at $55. I was trying to do all 20 at $54 but forgot to adjust the quantity on the first limit order, then did the other 19 for $55.

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10 minutes ago, TwinIon said:

I don't know what to expect from this stock other than a wild ride.

 

I fully expect institutional investors to leave retail Reddit investors holding the bag.

  • True 1
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7 minutes ago, osxmatt said:

I fully expect institutional investors to leave retail Reddit investors holding the bag.

 

I took my DSP shares with the intention of immediately selling during the frothy couple of hours you usually get right after an IPO starts trading. 

  • Sicko Sherman 1
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9 minutes ago, Ricofoley said:

Between this and Trump's new thing it's absolutely gonna be meme stock silly season for a while

 

I don't regret selling all my pre-IPO shares on Thursday and making sure I got out with some profit, although I do slightly regret not going through with my thought to take like half of what I made and buy back that much worth of shares while it ws in the $40s on Friday. 

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3 minutes ago, LazyPiranha said:

Facebook

 

Facebook is way bigger than reddit. Both by itself and especially if you roll in the other stuff it owns like Instagram. Twitter (at least pre-Musk) was more comparable in size. Twitter just felt like a lot bigger than it actually was because of its outsize influence that came from it being where journalists in particular congregated, but also because it was the primary platform for a lot of politicians, transportation agency service alerts, etc.

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47 minutes ago, mclumber1 said:

I made 45 bucks on RDDT.  I bought 15 shares on Friday (because I'm an idiot and didn't do the pre-IPO thing) and sold a few minutes ago.  What should I do with my new found wealth?

Less since you need to pay short term capital gain taxes. I would have said treat yourself to McDs but that shit is expensive. Maybe get a Tapatio Ramen

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