© Reuters. Reddit (RDDT) shares look set to open above IPO price
(Updated – March 21, 2024 1:36 PM EDT)
Reddit has made its long-awaited market debut Thursday, surging to as much as $53.63, which is 58% higher than its $34 initial public offering (IPO) price.
Reddit priced its IPO at the top end of the $31 to $34 range, valuing the company at $6.4 billion.
When assessing potential upcoming IPOs, analysts at Sichenzia Ross Ference Carmel told biedexmarkets.com last week that Reddit is one of “the only viable candidate,” although they noted the social media platform faces “many hurdles,” including its valuation.
“It has previously offered stock privately at a $10 billion valuation. It now plans to offer stock to its users rather than institutions, which will pose additional trading risks and volatility,” the analysts told biedexmarkets.com.