SAN FRANCISCO - Reddit, Inc. has set the public offering price for its much-anticipated initial public offering (IPO) at $34 per share. The social media platform announced that it will be offering 22 million shares of Class A common stock. Of these, Reddit is selling 15.28 million shares, while the remaining 6.72 million shares are being offered by certain selling stockholders.
The company clarified that it will not receive any proceeds from the shares sold by the stockholders. Furthermore, Reddit has extended an option to the underwriters to purchase up to an additional 3.3 million shares at the IPO price, with the usual underwriting discounts and commissions deducted.
The shares are slated to begin trading on the New York Stock Exchange (NYSE) under the ticker symbol "RDDT" on Thursday, March 21, 2024. The closing of the offering is anticipated to occur on March 25, 2024, provided all customary closing conditions are met.
Leading the underwriting for Reddit's IPO are prominent financial institutions including Morgan Stanley & Co (NYSE:MS). LLC, Goldman Sachs & Co (NYSE:GS). LLC, J.P. Morgan, and BofA Securities, acting as lead book-running managers.
They are joined by Citigroup, Deutsche Bank (ETR:DBKGn) Securities, and MUFG as joint book-running managers. A group of co-managers, including Citizens JMP, Needham & Company, Piper Sandler, Raymond James, Academy Securities, Loop Capital Markets, Ramirez & Co., Inc., and Telsey Advisory Group are also part of the underwriting syndicate.
Reddit's IPO is being conducted following a registration statement that has already been approved by the Securities and Exchange Commission. The offering is being made solely by means of a prospectus, which interested parties can obtain from the aforementioned financial institutions.
The announcement from Reddit comes as the company, known for its vast array of user-generated content and communities, continues to be a significant player on the internet. With over 100,000 active communities and approximately 73 million daily active unique visitors, Reddit stands as one of the largest sources of information online.
This news article is based on a press release statement. The offering of these securities will only occur through a prospectus, and there will be no sale in any jurisdiction where such an offer, solicitation, or sale would be unlawful before registration or qualification under the securities laws of such jurisdiction.
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