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Reddit's IPO as much as five times oversubscribed, sources say

Reuters · 1y ago

Reddit's IPO as much as five times oversubscribed, sources say

Reddit's IPO is reportedly oversubscribed four to five times, increasing the likelihood of the social media platform reaching its desired $6.5 billion valuation. While this does not predestine a successful stock market debut, it indicates that Reddit may at least achieve its targeted price range of $31 to $34 per share. Despite Reddit's loyal user base, the company has consistently incurred losses since its inception and has trailed behind rivals like Facebook and Twitter. Its reliance on volunteer moderators and controversial content moderation practices have also posed challenges with advertisers.

Related News

Reddit's IPO oversubscribed as much as five times, says report

Livemint

Livemint · 1y ago

Reddit's IPO oversubscribed as much as five times, says report

Reddit's initial public offering (IPO) is oversubscribed by four to five times, increasing the likelihood of the social media platform reaching its desired valuation of $6.5 billion. While this doesn't guarantee a strong stock market performance, it indicates that Reddit will at least achieve its targeted price range of $31 to $34 per share. Despite losing money since its launch, Reddit's IPO aims to raise up to $748 million. The platform's focus on niche subjects and loose content moderation has posed challenges for advertisers. Reddit plans to reserve 8% of shares for eligible users and moderators to attract retail investors.

Reddit's IPO as much as five times oversubscribed

Money Control

Money Control · 1y ago

Reddit's IPO as much as five times oversubscribed

Reddit's initial public offering (IPO) is reportedly four to five times oversubscribed, increasing the likelihood of the social media platform achieving its desired valuation of $6.5 billion. This oversubscription does not guarantee a strong stock market performance, but it suggests that Reddit will at least meet its targeted price range of $31 to $34 per share. Despite its dedicated user base, Reddit has consistently reported financial losses since its launch in 2005 and has struggled to match the success of competitors such as Facebook and Twitter. The company's IPO aims to raise up to $748 million.

Reddit's IPO as much as five times oversubscribed

Economic Times

Economic Times · 1y ago

Reddit's IPO as much as five times oversubscribed

Reddit's IPO is oversubscribed and it is likely to achieve its targeted valuation of $6.5 billion. The social media platform is expected to price its IPO between $31 and $34 per share when it goes public this week. While Reddit has faced challenges, such as financial losses and content moderation issues, it has a loyal user base and influential communities. The company has reserved a portion of its shares for retail investors and eligible platform users. Reddit had an average of 73.1 million daily active users in the last quarter of 2023.

Indian hotel operator Samhi Hotels' IPO oversubscribed five times

Reuters · 1y ago

Indian hotel operator Samhi Hotels' IPO oversubscribed five times

Indian hotel operator, Samhi Hotels, has seen its initial public offering (IPO) oversubscribed by over five times, with bids worth $504 million, according to exchange data. The company, which operates Marriott, Hyatt, and IHG hotels in India, received bids for 333 million shares, significantly exceeding the 62.5 million shares on offer. The IPO, valued at INR 13.7 billion ($182 million), comprises a fresh issue of shares and an offer-for-sale from existing investors. The proceeds will be used to repay debt. Samhi Hotels is expected to make its trading debut next week.

Reddit’s IPO has begun with shares soaring 60% within minutes

TechCrunch · 1y ago

Reddit’s IPO has begun with shares soaring 60% within minutes

Reddit's shares opened at $47 per share and quickly rose to around $55, marking a 60% increase from its IPO price of $34 per share. The company's strong IPO debut may challenge the notion that waiting is the best strategy for healthy private-market tech companies. Reddit's AI strategy, including its licensing of user data to train AI models, has garnered investor interest. However, the recent FTC inquiry into this plan could impact the stock's performance. With the tech sector experiencing a compression in valuations, the success of Reddit's IPO could potentially revive the IPO market for other tech companies.

Loyal Reddit users could win big from its IPO

Business Insider

Business Insider · 1y ago

Loyal Reddit users could win big from its IPO

Reddit's most active users may have the opportunity to purchase the company's stock at the IPO price before it starts trading. Around 75,000 of Reddit's key users will be given the chance to buy shares in March, although the exact number available to them is currently unknown. This approach is unusual as IPO shares are typically sold to larger investment funds and organizations. However, companies like Robinhood have previously offered stock to their users during their IPO, resulting in increased volatility. Reddit aims to achieve a $5 billion valuation with its IPO.

A lot of Redditors hate the Reddit IPO

The Verge

The Verge · 1y ago

A lot of Redditors hate the Reddit IPO

The upcoming initial public offering (IPO) of Reddit has sparked concerns and skepticism among Redditors themselves. Many question Reddit's ability to monetize its user base and become profitable, noting the company's history of losses and lengthy risk factors section in its IPO filing. While some Redditors appreciate the offer of buying shares as a thank you for their contributions, others perceive it as a gimmick, requiring them to potentially pay for the privilege of content moderation. Additionally, concerns have also been raised about Reddit's CEO, Steve Huffman, and his decision-making. Overall, the sentiment among Redditors towards the IPO is cautious and mixed.

Reddit sells training data to unnamed AI company ahead of IPO

Arstechnica

Arstechnica · 1y ago

Reddit sells training data to unnamed AI company ahead of IPO

Reddit has reportedly signed a $60 million per year deal with an undisclosed AI company to train its models using the platform's content. The move is seen as a boost to Reddit's anticipated initial public offering (IPO). While it is unclear if the AI company is OpenAI, the contract could serve as a model for future agreements. Reddit's decision to monetize its user-generated content follows a trend where tech firms enter licensing deals with AI companies for training data. Despite previous controversies, Reddit's revenue exceeded $800 million in 2023.

Reddit shares open 38% above IPO price

Economic Times

Economic Times · 1y ago

Reddit shares open 38% above IPO price

Reddit's shares made a strong stock market debut, opening 38% higher than the initial public offering (IPO) price. The social media platform was valued at $8.87 billion, with an IPO valuation of $6.4 billion. Reddit's entry into the stock market is seen as a major test for the IPO market, and its success or failure could impact other companies' plans to go public. The company's popularity surged during the meme-stock frenzy of 2021, with retail investors collaborating on its forum to buy shares of highly shorted companies. However, analysts have raised concerns about the risky retail allocation strategy employed by Reddit.

Reddit's planned IPO share price seems high, unless you look at its AI revenue

TechCrunch · 1y ago

Reddit's planned IPO share price seems high, unless you look at its AI revenue

Reddit has revealed its IPO plans with an initial price range of $31 to $34 per share, potentially valuing the company at around $5.4 billion. Despite being an unprofitable social media platform, Reddit's data licensing arrangements with AI companies could be a key factor in its higher valuation. The company sold $203 million worth of contracts to access its data in January 2024, attracting investors interested in Reddit's potential as a valuable source for training large language models. Reddit's active user base and extensive content creation make it an attractive asset in the AI industry.

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