share at 34: Reddit sets IPO price at the peak of range
Reddit prices IPO at $34 per share, the top of the rangeReddit priced its stock on Wednesday at $34 a share, the top of the anticipated range, a signal that investors are excited about the company’s IPO on Thursday.
The social media giant raised nearly $500 million in the offering.
Despite being profitable on EBITDA basis, Instacart and Klaviyo, two main IPOs of 2023, had lukewarm receptions on Wall Street last year.
But Reddit is still generating net losses of more than $90 million, which may bode poorly for the company’s stock amid push for profitability for newly traded companies.
The firm sold $203 million worth of contracts to AI companies for access to its data in January, according to a recent filing.
