Reddit pops 48% in NYSE debut after selling shares at top of range

Reddit saw a remarkable debut on Thursday as its shares surged by 48% in the first initial public offering (IPO) for a major social media company since Pinterest entered the market in 2019.

The 19-year-old platform, renowned for hosting countless online forums, priced its IPO at $34 a share on Wednesday, hitting the top end of the anticipated range.

Reddit and its selling shareholders garnered approximately $750 million from the offering, with the company itself raising around $519 million.

Upon its market debut, the stock opened at $47 and soared to a peak of $57.80, representing a staggering 70% increase during the day.

Ultimately, it closed at $50.44, resulting in a market capitalization of approximately $9.5 billion.

At its IPO price, Reddit held a valuation of roughly $6.5 billion, a modest decrease from its private market valuation of $10 billion in 2021, a year marked by substantial growth in the tech industry.

However, the landscape shifted in 2022, with rising interest rates and inflation prompting investors to retreat from high-risk assets, CNBC reported.

READ MORE: https://www.cnbc.com/2024/03/21/reddit-ipo-rddt-starts-trading-on-nyse.html

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