New York CNN —Reddit on Monday said it expects to price shares between $31 and $34 each when it makes its long-anticipated initial public offering, which will make it the first social media company to go public in years.
Reddit, along with some existing stockholders, plans to offer 22 million shares of the company’s Class A stock, meaning the IPO could raise as much as $748 million from those shares, according to an updated prospectus.
Reddit itself expects to earn approximately $450 million in proceeds from the IPO, if shares are priced at the midpoint of its expected range.
Reddit is taking the unusual step of giving a portion of those users the opportunity to become shareholders by reserving 8% of its IPO shares, or 1.76 million shares, for its most loyal Redditors.
The company has acknowledged that “Redditors’ participation in this offering could result in increased volatility” in its stock price.
Persons:
Reddit
Organizations:
New, New York CNN
Locations:
New York, IPOs