Reddit and its eclectic bazaar of online communities is ready to plumb high-stakes territory — the stock market.
The company priced its IPO at $34 a share Wednesday and shares will begin trading Thursday on the New York Stock Exchange under the ticker symbol RDDT in a market debut likely to spur a flurry of commentary on Reddit’s own platform, as well as competing social media outlets.
The IPO will test the quirky company’s ability to overcome a nearly 20-year history colored by uninterrupted losses, management turmoil and occasional user backlashes to build a sustainable business.
The interest surrounding Reddit stems largely from a large audience that religiously visits the service to discuss a potpourri of subjects that range from silly memes to existential worries, as well as get recommendations from like-minded people.
About 76 million users checked into one of Reddit’s roughly 100,000 communities in December, according to the regulatory disclosures required before the San Francisco company goes public. Reddit set aside up to 1.76 million of 15.3 million shares being offered in the IPO for users of its service. Per the usual IPO custom, the remaining shares are expected to be bought primarily by mutual funds and other institutional investors betting Reddit is ready for prime time in finance.
