Reddit finalizes its jump to Wall Street to raise up to 684 million

With the placement of 22 million shares at a price between 31 and 34 dollars.

Reddit , the popular American forum platform, is preparing to land on the New York Stock Exchange with the placement of 22 million shares at a price between 31 and 34 dollars , which would raise up to 748 million dollars (684 million euros), according to the prospectus registered by the company with the Securities and Exchange Commission (SEC) and collected by Europa Press.

The social platform that was once the epicenter of the ‘meme actions’ maelstrom , has specified that it plans to sell 15.27 million shares, for which it would receive up to 519 million dollars (474 million euros) at the highest price of the established range, while Reddit investors will sell another 6.73 million securities in exchange for up to 229 million dollars (210 million euros).

Reddit had submitted a confidential registration application for the market listing of its common shares at the end of 2021, although it was not until last February when it registered the transaction prospectus, for which it has now determined the number of shares and the price range, adding that it will be listed on the New York Stock Exchange under the symbol ‘RDDT’.

In this sense, the company has highlighted that, as a community platform, it is committed to giving Reddit users and moderators the opportunity to participate in the offer, for which it will reserve 8% of the shares offered in the transaction, around 1.76 million titles, for users and moderators who created an account on or before January 1, 2024, residents of the United States and at least 18 years of age.

“In addition, eligible users and moderators must be in good standing on our platform and cannot be current or former Reddit employees,” the company explains, adding that shares purchased through this program “will not be subject to the terms of the agreement.” “blocking” and may be sold freely by users.

According to the data provided by the company for the transaction, the valuation of Reddit would be around 6,500 million dollars (5,942 million euros), a figure lower than the 10,000 million dollars (9,140 million euros) reached in valuation rounds. in summer 2021.

“We are going public to advance our mission and become a stronger company. We hope that going public will provide significant benefits to our community as well,” said Reddit co-founder and CEO Steve Huffman .

As part of the process of jumping onto the stock market, Reddit has reported that at the end of last year it recorded losses of 90.8 million dollars (83 million euros), compared to the ‘red numbers’ of 158.6 million dollars ( 145 million euros) in 2022, while annual revenues totaled 804 million dollars (735 million euros), up 21%, and gross margin increased to 86% from 84% in 2022.

Likewise, the platform reported that the number of monthly active users was 267.5 million , while the number of daily active users was 73.1 million.

In this sense, he has highlighted among the risks for the company’s business, the impact on user numbers related to content contributions by ‘Redditors’ or the attractiveness and value of these contributions for other users of the forums. .

“We may experience a decline in the number of Redditors accessing our products and services and in user engagement, which could result in the loss of advertisers and may harm our reputation, business, results of operations, financial condition and prospects. “acknowledges the company, warning of its history of net losses and the possibility that it may not be able to achieve or maintain profitability in the future.

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