Reddit seeking up to $6.5 billion valuation in IPO: Report

Reddit, the popular online platform, is poised to make its debut on the stock market with an initial public offering (IPO) aiming for a valuation of up to $6.5 billion, sources familiar with the matter informed Reuters on Friday. This valuation marks a significant decrease from its previous worth.

According to the sources, Reddit is contemplating setting a price range of $31 to $34 per share. 

Insiders revealed that the IPO will involve a mix of newly issued shares by Reddit as well as existing shares held by investors and employees.

The company's valuation was previously estimated at $10 billion during a funding round in 2021. Reports from January indicated that Reddit was planning to sell approximately 10% of its shares during the IPO.

Reddit, renowned for its specialised discussion forums and user-driven content curation system involving 'up' and 'down' votes, recently disclosed a narrowed net loss of $90.8 million in 2023, with a revenue growth of approximately 21%.

The public filing for Reddit's IPO was made available last week, marking a significant milestone almost two decades after its inception. The IPO is seen as a crucial test for the platform, which continues to trail behind social media giants like Facebook and Twitter, now rebranded as X.