Reddit to launch IPO, aims to raise over $700M in new capital

March 11 (UPI) -- Reddit on Monday released filing paperwork that outlined the details of its initial public offering on the New York Stock Exchange.

In its U.S. Securities and Exchange registration statement, Reddit -- with the ticker symbol RDDT on the NYSE -- said the company will be offering 22 million Class A stock shares at a price point of $31 to $34 in an impending IPO.

"We are going public to advance our mission and become a stronger company," Reddit CEO and co-founder Steve Huffman wrote in the IPO filing. "We hope going public will provide meaningful benefits to our community, as well."

The social media company hopes to raise up to $748 million in new capital in what will be the first tech stock launch since Pinterest nearly five years ago in 2019.

Reddit -- with other shareholders such as OpenAI's CEO Sam Altman and publishing giant Conde Nast -- is seeking a $6.5 billion valuation. In 2023, it had over $800 million in annual sales, but had a net loss of slightly over $90 million.

The company put aside more than 1 million shares of stock for select users -- also known as "Redditors" -- who will be able to take advantage of certain stock trading opportunities as part of Reddit's IPO but warned the move could be susceptible to "increased volatility in the market price."

According to Reddit's IPO filing, over 76 million people on average visit its website every day and have since December.

Reddit users were at the heart of "meme stock" trading, which sought to boost the price of stocks targeted by short sellers, with the most high-profile case involving video game retailer GameStop but later focusing on other companies such as AMC.

In his letter, Huffman -- who is selling 4.17 million of his own shares -- said Reddit "is a community that rewards candor and honest advice."

"This is why millions of people trust Reddit for everything from relationship guidance to in-depth product recommendations," he said, adding that company officials "have confidence in the magic of human-curated organization, creativity and generosity. Reddit enables these human virtues, which means we can mostly stay out of the way."