Reddit shares surge 48% on US market debut
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The news: Social media platform Reddit's shares surged on the company's first day of trading in New York, in a sign that investor appetite for promising yet loss-making companies could be returning.
The numbers: The San Francisco-based company's shares surged as much as 67% in trading on the New York Stock Exchange, before closing at USD50.44, up 48.4%. Its IPO had been priced at USD34 a share, valuing the company at USD6.4 billion ($9.7 billion).
The context: Reddit was founded in 2005 and for its IPO set aside up to 1.76 million of the 15.3 million shares for its most loyal users.
In a filing to the US Securities and Exchange Commission, the company warned the actions of “retail and other individual investors” may “result in increased volatility”.
Reddit was founded by Alexis Ohanian and Steve Huffman, but was acquired by publishing giant Condé Nast in 2006 and then spun out as an independent company in 2011.
