Reddit IPO 'four to five times' oversubscribed

The news: Reddit's upcoming initial public offering is between four and five times oversubscribed, making it likely the social media platform will reach its target USD6.5 billion ($9.9 billion) valuation, Reuters reported citing people familiar with the matter.

The numbers: The social media platform, which filed the paperwork for its IPO with the US Securities and Exchange Commission last month, is now expected to reach its targeted price range of USD31 to USD34 per share when it prices the IPO on Wednesday. Reddit, which was last valued a USD10 billion in a private funding round in 2021, is seeking to raise up to USD748 million in its IPO.

Reddit has reserved 8% of the total shares on offer for eligible users and moderators on its platform, certain board members and friends and family members of its employees and directors.

The context: Reddit plans to debut on the New York Stock Exchange will mark the first major social media IPO this year, coming almost two decades after the company's launch. It follows the company's USD60 million deal with Google last month to make its content available for training Google’s artificial intelligence models.