Social media company Reddit has priced its shares at $34 ahead of its expected public debut in New York on Thursday, coming in at the top of previous price guidance, giving it a fully diluted valuation of $6.4bn.
The pricing, announced by the company in a statement on Wednesday, puts Reddit’s valuation well below the $10bn it received at its last private fundraising in 2021.
Based on the number of shares outstanding immediately after the IPO, the price implies a market capitalisation of $5.4bn. Including options that are likely to be exercised, the value reaches $6.4bn.
Pricing at the top of the range is a vote of confidence in the company’s prospects. Earlier in the day, shares of Astera Labs, an AI infrastructure-related group, surged 72 per cent share in their public debut on the Nasdaq exchange — a pop that has added momentum to Reddit’s IPO book, according to people familiar with the deal.
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