Reddit prices IPO at top of indicated range to raise $748 million

Reddit priced its initial public offering at the top of its targeted range of $31 to $34 per share on Wednesday, raising $748 million.

Social media platform Reddit priced its initial public offering at the top of its targeted range of $31 to $34 per share on Wednesday, raising $748 million and giving the ailing technology IPO market a much-needed boost.

Reddit and its existing shareholders sold 22 million shares at $34 a share, giving Reddit a valuation of about $6.4 billion.

To tap retail investors, Reddit reserved 8% of the total shares on offer for eligible users and moderators on its platform, certain board members and friends and family members of its employees and directors.

Excluding the shares sold by existing shareholders, Reddit raised gross proceeds of $519.4 million from its IPO. Reuters reported earlier on Thursday that Reddit and its bankers were guiding they could price the IPO at the top of the indicated range or above.

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The top-end pricing is a vindication of the company's decision to lower its valuation expectations, after it was valued at $10 billion in a private fundraising round in 2021.

The successful offerings of Reddit and Astera Labs could boost the lackluster tech IPO market after two years of largely subdued activity. Earlier this year, the stock market launches of other big names including KKR-backed BrightSpring and sportswear brand Amer Sports received a lukewarm reception from investors.