Approximately 75,000 of Reddit’s top contributors, known as redditors, are slated to receive this opportunity, as per sources familiar with the matter.
These select users will be granted the chance to purchase Reddit shares at the IPO price before they become available for public trading, a privilege typically reserved for institutional investors. The company, headquartered in San Francisco and valued at roughly $10 billion following a funding round in 2021, has been diligently preparing for its IPO, as previously reported by Reuters in January. Reddit initially filed confidentially for its IPO in December 2021.
The IPO market has faced challenges over the past couple of years, marked by low trading volumes and several newly listed companies seeing their stock prices dip below the IPO offering. Reddit’s IPO, a project in development for over three years, would mark a significant event as the first major social media company to go public since Pinterest’s debut in 2019.
