Reddit, Inc. (RDDT Proposed) disclosed the terms just before sunrise today for its long-awaited IPO: 22.0 million shares at a price range of $31.00 to $34.00 to raise $715 million, based on mid-point pricing at $32.50, according to its S-1/A filing dated March 11, 2024. This is a New York Stock Exchange listing. Reddit’s IPO is expected to price next week – on March 20, 2024 – to trade March 21st on the NYSE.
Morgan Stanley, Goldman Sachs, J.P. Morgan, BofA Securities, Citigroup, Deutsche Bank Securities and MUFG are the joint book-runners.
Reddit, the San Francisco-based social media company that’s home to the r/Wall Street Bets forum, is offering 15.28 million shares and the selling stockholders are offering 6.72 million shares, according to the prospectus.
At Reddit’s request, the underwriters are reserving up to 1.76 million shares of its Class A common stock – or up to 8 percent of the stock in the IPO – for sale at the IPO price through a directed share program to eligible users and moderators on its platform, certain members of its board of directors, and friends and family members of certain employees and directors. These shares will not be subject to any lock-up provisions, the prospectus says.
Reddit would have a market cap – or a valuation – of about $5.17 billion, assuming the IPO is priced at the $32.50 mid-point of its range, the prospectus says.
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