Reddit is aiming for a valuation of up to $6.5 billion in its initial public offering, according to people familiar with the matter.
The social media company plans to target a price range of $31 to $34 per share for its initial stock sale, the people said. Anonymity was requested as the information is not public.
At this price point, Reddit’s fully diluted value would be about $6 billion to $6.5 billion, the people said. The company plans to offer shares to potential investors on March 11, the company said.
Reddit also plans to have some employees sell their shares in an IPO, people familiar with the matter said. The company had already said it would set aside shares in the IPO for purchase by users and moderators of the platform.
Details of the offering, including size and timing, are subject to change, the people added. The IPO is led by Morgan Stanley, Goldman Sachs Group Inc., JPMorgan Chase & Co. and Bank of America, according to a filing with the U.S. Securities and Exchange Commission.
Representatives for these banks declined to comment. Details such as the price range and valuation were first reported by the Wall Street Journal.
San Francisco-based Reddit is a high-profile member of this year’s club of newly public and soon-to-be-public companies, after a two-year slump in IPOs on U.S. exchanges.
The largest of these listings was Amer Sports’ $1.57 billion offering in January. Current IPO candidates include Microsoft-backed data security startup Rubrik and healthcare payments company Waystar Technologies.
Bloomberg News reported in January that Reddit had considered feedback in early meetings with potential IPO investors that it should consider a valuation of at least $5 billion. The company was targeting a valuation in the mid-single digits, people familiar with the matter said at the time.
The valuations being considered would represent a significant reversal from those seen during the tech industry’s pandemic-era heyday. In 2021, Reddit raised funds valuing the company at $10 billion, and the following year, Bloomberg News reported that the company could be valued at $15 billion in an IPO.
The company plans to trade its shares on the New York Stock Exchange under the symbol RDDT.