The San Francisco-based company priced its initial public offering at $34 a share Wednesday and will begin trading Thursday
The San Francisco-based social media company announced the pricing of its initial public offering on Wednesday, raising at least $519 million in the process and giving the business an initial market capitalization of $6.4 billion.
After going through a succession of CEOs, Reddit brought back Huffman as its head in 2015. But, it didn’t start generating “meaningful” revenue from its operations until three years later. In the offering, Reddit is selling 15.3 million shares. Previous investors in the company are selling another 6.7 million shares, but those proceeds — about $229 million — will go to those shareholders, not the company. Reddit set aside another 3.3 million shares for the investment banks that helped underwrite its offering; should the banks purchase all those shares, Reddit would see another $112 million from the deal.
Your last-minute guide to St. Patrick’s weekend in The City In addition to San Francisco’s 173rd parade, and there are plenty of other events to keep the good times rolling Following the IPO, Huffman will hold 4.2 million Class B shares, giving him 3.3% of the total voting power in the company. However, Chinese technology company and Advance Publications, which owns Conde Nast and remains Reddit’s biggest stakeholder, have agreed to let Huffman vote their shares. With those agreements, he’ll control 4.3 million Class A shares and another 53.3 million Class B shares, giving him a 46.
It’s unclear whether Reddit’s IPO will spark a market revival. While dozens of San Francisco-based companies appear to be waiting to go public, analysts told the Examiner that Reddit may be too idiosyncratic in terms of its age, business model, and scale to indicate the market’s appetite for new offerings.
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Reddit Priced IPO At $34 Per Share—Hitting The High End Of Its RangeI am a Colorado-based reporter. Before joining Forbes, I covered education and local government in Fort Collins, Colorado. I am a graduate of Creighton University, where I got a BA in journalism, and Arizona State University, where I got an MA in investigative journalism. Send tips at mbohannonforbes.com and follow me on Twitter molboha.
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