Ready for the first US social media IPO since 2019? | Forexlive

In its filing to the SEC, Reddit plans to raise up to $748 million as it sells about 22 million shares – of which 15.3 million will be Class A common shares. The range for the launch is between $31 to $34 per share, with the fully diluted valuation being near $6.5 billion if taking the top end of the range.

This is going to be one of more anticipated launches as it also represents the first major tech IPO for the year. And considering where the market is trading, the interest could be taken as a litmus test for overall sentiment.

But a key distinction here is that Reddit is more of a social media platform/forum at best. I won’t be one to deny that I browse through it every day as the Subreddits make it extremely easy to follow, gather information, ask questions, and stay up to date with whatever your interests may be.

As such, this makes Reddit the first social media IPO since Pinterest back in 2019. At its peak, Reddit is said to be valued around $10 billion back during the pandemic. So, $6.5 billion is not quite as ecstatic if you needed some context on the numbers above.

Nonetheless, it will still be one of the more closely watched stocks this year once it launches. Reddit will go live under the ticker RDDT, with reports suggesting that the counter will open on 21 March.