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Reddit appears set to reach a $6.5 billion valuation with its initial public offering (IPO), according to Reuters. 
The San Francisco-based social media company’s IPO is currently between four and five times oversubscribed, the report continued, citing unnamed sources. 
This figure marks a decrease from the $10 billion valuation achieved in its last fundraising round in August 2021. 
The planned IPO price range is set between $31 and $34 per share. 
Reddit — which holds Bitcoin (<a href="https://crypto.news/price/bitcoin/" target="_blank" rel="noreferrer noopener">BTC</a>), Ethereum (<a href="https://crypto.news/price/ethereum/" target="_blank" rel="noreferrer noopener">ETH</a>), and Polygon (<a href="https://crypto.news/price/polygon/" target="_blank" rel="noreferrer noopener">MATIC</a>) according to its IPO <a href="https://www.sec.gov/Archives/edgar/data/1713445/000162828024006294/reddits-1q423.htm" target="_blank" rel="noreferrer noopener">filing</a> — plans to trade under the ticker RDDT on the New York Stock Exchange. 
 You might also like: <a href="https://crypto.news/reddit-bitcoin-ether-matic-ipo-filing/"> Reddit holds Bitcoin, Ether, Matic on balance sheet per IPO filing </a> 
<h3 class="wp-block-heading" id="strong-reddit-strong-seeks-strong-to-raise-748m-strong">Reddit seeks to raise $748m</h3> 
Reddit has yet to turn a profit. 
During the last quarter of 2023, the company touted net income of approximately $18.5 million. It concluded 2023 with a net loss of $90.8 million. 
Reddit, which seeks to raise $748 million via the IPO, plans to offer more than 15.2 million shares of its Class A common stock, accompanied by an additional 6.7 million shares offered by selling stockholders. 
Reddit will also grant some of its employees the opportunity to sell shares during the IPO, a move that deviates from the typical process of imposing a lock-up period to prevent immediate selling that could negatively impact the stock price. 
It will also reserve shares for top users who have good “karma,” a term the platform uses to gauge its users’ reputation on the site. 
Reddit was sold to media company Condé Nast in 2006. 
Co-founder and CEO Steve Huffman owns 3.3% of the company (his fellow co-founder Alexis Ohanian left the company in 2020). 
Reddit’s other major shareholders include Condé Nast’s parent company, Advance Publications (30.1%), as well as Shenzhen, China-based Tencent (11%) and OpenAI CEO Sam Altman (8.7%). 
The decision to target a lower valuation comes amid a chilly IPO market. 
So far in 2024, there have been 33 IPOs on the U.S. stock market. Per Stock Analysis, as of Sunday, March 17, this is 10% more than the same timeframe in 2023. 
There were just 1,429 IPOs across the globe in 2023, according to S&amp;P Global. That’s the lowest number since 2019, and a nearly 16% drop from 2022. 
 Read more: <a href="https://crypto.news/reddit-shuts-down-blockchain-based-community-points-service/"> Reddit shuts down blockchain-based Community Points service </a>

Reddit IPO oversubscribed 5x, targets $6.5b valuation: report

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