Popular online community platform Reddit Inc. is readying for one of the largest initial public offerings (IPO) of this year, aiming to raise a significant $748 million, according to details disclosed recently by the company and its investors. As reported by Bloomberg Law, Reddit and its investors provided more information confirming their plans while shedding light on the precise amount they hope to raise.
As part of its public offering strategy, Reddit plans to sell 22 million shares priced between $31 to $34 each. The majority of these shares, approximately 15.3 million, will be sold directly by the company whilst the remaining shares will be offered by Reddit’s investors and employees.
This revelation comes in the wake of the infamous ‘meme stock frenzy’ of 2021, which was, in large part, instigated by Reddit’s community. It’s interesting to note that if the shares are sold at the upper end of their proposed price range, Reddit’s market capitalization could see a sizable boost. However, future market reactions and the actual success of the IPO can only be observed in due time.