Reddit’s offering, the fourth largest this year, is a high-profile addition to 2024’s roster of newly and soon-to-be public companies.
Already a subscriber?Reddit shares jumped as much as 67 per cent over their initial public offering price after the social media company and its shareholders raised $US748 million priced at the top of a marketed range, sending a strong signal that the window for US IPOs is reopening.
Reddit’s IPO, the fourth largest this year, is a high-profile addition to 2024’s roster of newly and soon-to-be public companies. The biggest of those listings has been the $US1.57 billion offering by Amer Sports Inc. in January.The listing follows the $US713 million Astera Labs Inc offering by one day. Astera, a semiconductor connectivity company focused on artificial intelligence, priced its shares above its marketed range and then jumped 72 per cent in its trading debut on Wednesday.
Reddit also has announced a deal with Alphabet’s Google, allowing Google’s AI products to use Reddit data to improve their technology. Large language models often need vast troves of human-generated content to improve.“Large language models need data,” Reddit chief operating officer Jennifer Wong told Bloomberg TV.
Reddit’s IPO tops big listings in September by US technology companies Instacart, which raised $US660 million, and Klaviyo, with a $US659 million offering. While those IPOs, along with British chip designer Arm Holdings’s $US5.23 billion offering — 2023’s biggest — failed to launch a listings rush, the market has warmed since then.About $US8.8 billion has been raised this year via IPOs on US exchanges, the data show. That’s an increase of around 152 per cent at this point last year.
Reddit’s largest shareholder is Advance Magazine Publishers, part of the Newhouse family publishing empire that owns Conde Nast, which bought Reddit in 2006 and spun it out in 2011.Reddit co-founder and Chief Executive Officer Steve Huffman said the company has many opportunities to grow both the platform and the business, according to a signed letter included in the filings.
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