Reddit planning to sell stock to biggest users in unusual IPO wager, WSJ says

Reddit plans to place a big chunk of its IPO shares in the hands of its users, an unusual move that could build loyalty but also comes with risk, The Wall Street Journal’s Corrie Driebusch reports. The company plans to reserve an as-yet-undetermined number of shares for 75,000 of its most prolific so-called redditors when it goes public next month, according to people familiar with the matter. The users will have the opportunity to buy Reddit shares at its initial public offering price before the stock starts trading, a privilege normally reserved only for big investors. Robinhood, a stock-trading platform on which many of the meme stocks were traded, sold a chunk of its IPO to its users in 2021, the author notes. That made for a volatile first day of trading, with the stock falling more than 8%.