Reddit is seeking a valuation of up to $6.5 billion in its IPO, according to people familiar with the matter.
The social media company plans to target a price range of $31 to $34 per share in its initial stock sale, the people said, asking not to be identified because the information is confidential.
At that price range, Reddit would have a fully diluted value of about $6 billion to $6.5 billion, the people said. The company plans to market the shares to potential investors on March 11, they added.
Reddit also plans to allow some employees to sell shares as part of the IPO, according to the people. The company had already announced that it would hold shares in the IPO for purchase by users and moderators of its platform.
Details of the offering, including size and timing, could change, the people added. The IPO is led by Morgan Stanley, Goldman Sachs Group Inc., JPMorgan Chase & Co. and Bank of America Corp., according to its filings with the U.S. Securities and Exchange Commission.
Representatives of these banks declined to comment. Some details, including the price range and valuation, were previously reported by The Wall Street Journal.
San Francisco-based Reddit is a high-profile member of this year’s club of new and future public companies after two years of slumping IPOs on U.S. exchanges.
The largest of those IPOs was Amer Sports Inc.’s $1.57 billion offering in January. Current IPO candidates include: Microsoft Company-backed data security startup Rubrik Inc. and healthcare payments company Waystar Technologies Inc.
Reddit reviewed feedback from early meetings with potential IPO investors that this should be the case hold a valuation of at least $5 billion, Bloomberg News reported in January. The company was seeking a valuation in the mid-single-digit billion range, people familiar with the matter said at the time.
The valuations considered would represent a significant decline during the pandemic from valuations from the heyday of tech. In 2021, Reddit raised $10 billion in funding and Bloomberg News reported The following year, the company might have been valued at up to $15 billion in an IPO.
The company plans to trade its shares on the New York Stock Exchange under the symbol RDDT.