18-3-2024 (NEW YORK) Reddit’s upcoming initial public offering (IPO) is witnessing an overwhelming response, with sources indicating on March 17 that the demand is between four and five times higher than the available shares. This surge in demand enhances the likelihood of the social media platform achieving its targeted valuation of US$6.5 billion (S$8.7 billion).
The enthusiasm surrounding Reddit’s IPO comes amidst recent controversy over the platform’s decision to charge third-party app developers for access to its data.
With over 100,000 online forums, known as “subreddits,” Reddit facilitates discussions spanning a wide array of topics, ranging from the mundane to the profound, according to co-founder and CEO Steve Huffman.
The platform gained significant attention in 2021 during the “meme-stock” frenzy, where retail investors on Reddit’s “wallstreetbets” forum collaborated to purchase shares of heavily shorted companies like GameStop.
In an effort to engage retail investors, Reddit has allocated 8 percent of the total shares for eligible users and moderators on its platform, select board members, and friends and family of its employees and directors.
According to regulatory filings, Reddit boasted an average of 73.1 million daily active “uniques” – users who engage with the platform at least once daily – in the three months ending December 31, 2023.
