Popular social media platform Reddit is aiming for a valuation of up to $6.4 billion in its U.S. initial public offering (IPO). The company is targeting a sale of around 22 million shares, priced between $31 and $34 each, and is looking to raise up to $748 million. The selling shareholders are offering around 6.7 million shares.
According to a Reuters report, Reddit’s targeted valuation is less than the $10 billion the company was valued at after its fundraising round in 2021.
The firm revealed in its IPO filing that its net loss narrowed to $90.8 million in FY23 compared to a loss of $158.6 million in the same period last year. In addition, its revenues grew 21% year-over-year to $804 million.
Reddit expects to list on the NYSE under the symbol “RDDT.”
Is IPO ETF a Good Investment?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on Renaissance IPO ETF (NYSEARCA:IPO) shares based on 50 Buys and 9 Holds assigned in the past three months, as indicated by the graphic below. After a 52.6% rally in its share price over the past year, the average IPO price target of $43.16 implies 6.9% upside potential.
