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Reddit’s IPO Targets $6.4B Valuation
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Reddit’s IPO Targets $6.4B Valuation

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Reddit is targeting a valuation of $6.4 billion through its IPO.

Popular social media platform Reddit is aiming for a valuation of up to $6.4 billion in its U.S. initial public offering (IPO). The company is targeting a sale of around 22 million shares, priced between $31 and $34 each, and is looking to raise up to $748 million. The selling shareholders are offering around 6.7 million shares.

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According to a Reuters report, Reddit’s targeted valuation is less than the $10 billion the company was valued at after its fundraising round in 2021.

The firm revealed in its IPO filing that its net loss narrowed to $90.8 million in FY23 compared to a loss of $158.6 million in the same period last year. In addition, its revenues grew 21% year-over-year to $804 million.

Reddit expects to list on the NYSE under the symbol “RDDT.”

Is IPO ETF a Good Investment?

Turning to Wall Street, analysts have a Moderate Buy consensus rating on Renaissance IPO ETF (NYSEARCA:IPO) shares based on 50 Buys and 9 Holds assigned in the past three months, as indicated by the graphic below. After a 52.6% rally in its share price over the past year, the average IPO price target of $43.16 implies 6.9% upside potential.

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