Reddit Inc. and its backers are allegedly aiming to garner as much as $748 million in what would be one of the largest initial public offerings (IPOs) so far this year.
According to anonymous insiders familiar with the plan, the social media platform plans a sale of 22 million shares, priced between $31 to $34 each. It’s important to note that these details are not yet public. However, the company was reportedly targeting a hefty valuation of up to $6.5 billion in the listing; this information was previously reported by
Bloomberg News.
The same sources also mentioned that the company intends to set aside 1.76 million shares for a particular portion of the initiative. Additional details on that aspect were not disclosed.
Should Reddit achieve this high valuation, this would undoubtedly place them among the top ranks of social media and tech companies capitalized through the public market this year. The final details of the IPO are still in the process of negotiation and like all pre-IPO discussions, they are subject to change depending on a variety of factors including market conditions and investor responses. As such, legal professionals looking to involve themselves in the IPO should keep a close watch on any further developments.