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Benzinga
  • 2 years ago
Reddit plans to raise $748 million in its IPO by offering around 22 million shares priced from $31 to 34 each. Redditors can sell their shares immediately through a directed share program rather than facing the typical post-IPO lock-up period. This could lead to Reddit becoming a "meme stock" heavily influenced by social media chatter rather than fundamentals. Reddit users and moderators will gain access to 1.76 million shares, or 8%, and sell freely without restrictions. There's potential for Redditors to collectively pump up the stock price through coordinated buying.
Transcript
00:00 It's Benzinga and here's what's on the block.
00:02 Reddit plans to raise up to $748 million in its IPO by offering around 22 million shares priced
00:08 from $31 to $34 each. Redditors will be able to sell their shares immediately through a
00:12 directed share program rather than facing the typical post-IPO lock-up period. This
00:16 could lead to Reddit becoming a meme stock heavily influenced by social media chatter
00:20 rather than fundamentals. Reddit users and moderators will gain access to 1.76 million
00:25 shares or 8% and sell freely without restrictions. There's potential for Redditors to collect
00:29 to pump up the stock price through coordinated buying. But volatility could also hurt Reddit
00:34 if users attack the stock and drive the price down. Reddit cited R/WallStreetBets activity
00:39 as an IPO risk factor given retail traders direct market access. For all things money,
00:43 visit Benzinga.com.
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