Reddit's IPO oversubscribed as much as five times, $6.5 billion valuation within reach, says report

livemint.com:

initial public offering is currently between four and five times oversubscribed, people familiar with the matter said on Sunday, making it more likely the social media platform will attain the $6.5 billion valuation it seeks. While the oversubscription does not guarantee a strong performance in the stock market debut, it means the company is poised to at least reach its targeted price range of $31 to $34 per share when it prices the IPO in New York on Wednesday, the sources said. The sources said the marketing of the IPO was continuing and asked not to be identified because the details are confidential.

A Reddit spokesperson declined to comment. Reddit has already curbed its valuation expectations after it was valued in a $10 billion private fundraising round in 2021. The company's IPO is currently seeking to raise as much as $748 million.

Despite the loyalty of many of its users, Reddit has lost money every year since its launch in 2005 and has lagged behind the commercial success of contemporaries such as Meta Platforms' Facebook and Twitter, now known as X. The focus of many Reddit users on niche subjects and the platform's somewhat loose approach to content moderation has been a sticking point with some advertisers. Reddit relies on volunteers from its user base to moderate the content posted on its forums.