The protagonist of the most anticipated IPO of the recent period is Reddit, whose management revealed some information about the IPO on Monday.
What are the numbers? According to Reuters information , according to preliminary analyst expectations, the company would attract $500 million in fresh funds at a market value of around $5 billion by entering the stock market. In contrast, according to the company’s management:
- They would go public at a value of 6.4 billion dollars
- The company would raise $748 million in capital
- for this, 22 million shares would be issued for sale, in the $31-$34 range
Why is it important? Will Reddit’s IPO be a good indicator of whether the investor appetite for IPOs, which had waned on the front of tech companies in the last couple of years, has returned?
Context. Reddit is one of the world’s largest social media platforms with its unique forum-based interface. As we wrote before , the company wanted to go public around 2021, but in the end it was postponed until then, now they see in the hype around AI another opportunity to boost the company’s business by giving different companies developing artificial intelligence access to the content of their forums, which they train they can use as data for their models. The first such deal has already been concluded by Reddit with Google, the search giant pays the company 60 million dollars annually following a non-exclusive agreement.
