Reddit’s initial public offering (IPO) is reportedly as much as five times oversubscribed as the social media seeks out investors in search of a US$6.5 billion valuation.
As per Reuters-cited sources, Reddit has been met with the interest ahead of plans to price the IPO this Wednesday.
Initial targets, unveiled in a regulatory filing last week, had been to offer approximately 15.3 million shares, priced at between US$31 and $34 per share each.
Existing investors are set to sell an additional 6.7 million shares meanwhile, which combined with the newly-issued stock could raise as much as US$748 million.
Such oversubscription does not guarantee a strong debut on the New York Stock Exchange though, with Reddit having previously been valued at US$10 billion after a private fundraising round in 2021.
The company, which hosts platforms for users to share and discuss voluntarily moderated posts, has faced losses every year since its launch in 2005.
Marketing of the IPO is ongoing, according to Reuters’ sources, with around 8% of the shares on offer set to be reserved for the likes of eligible users to tap retail investors.