Reddit IPO: Shares Pop More Than 60% in Debut, Internet Company Nets $519 Million
variety.comTodd Spangler NY Digital Editor Investors rallied around Reddit‘s initial public offering Thursday, driving the discussion-forum company’s stock up over 50% in its market debut.
Through the IPO — expected to be among the biggest tech stock offerings of the year — Reddit raised $519 million and created a windfall for existing shareholders, including Condé Nast parent company Advance Publications and OpenAI CEO Sam Altman.
Reddit shares began trading on the New York Stock Exchange on Thursday (March 21) under the ticker symbol “RDDT.” The initial offering price was $34 per share, valuing Reddit at $6.4 billion (less than its prior $10 billion private valuation).
As of 1:20 p.m. ET, shares were trading at $56.12 apiece. Reddit, the 19-year-old company once billed as “the front page of the internet,” said it plans to use the net proceeds from the IPO for general corporate purposes as well as potentially to “in-license, acquire or invest in complementary technologies, assets or intellectual property.” On Thursday, Reddit announced the pricing of its IPO at $34 per share — the high end of its previous range.
Read more on variety.com
