Reddit¡¯s first-day jump fattened the wallets of the social media platform¡¯s users who were given the unusual opportunity to buy shares at the initial public offering price, as well as longtime investors benefiting from the rebound in the company¡¯s valuation.
Touting its plan to profit from the growth of artificial intelligence, Reddit¡¯s shares climbed 48% in its trading debut Wednesday after pricing at the top of a marketed range to raise $748 million in the fourth-largest U.S. IPO of the year.
At the closing price of $50.44, San Francisco-based Reddit has a market value of $8 billion. Including stock options and restricted share units, the company¡¯s fully diluted valuation is closer to $9.5 billion, based on filings with the U.S. Securities and Exchange Commission. That¡¯s about $3 billion more than its valuation in Tuesday¡¯s share sale and just shy of the $10 billion figure it had achieved in a 2021 funding round.
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