Reddit to sell shares to loyal users in IPO - WSJ
On Wednesday, it was reported by the Wall Street Journal that Reddit, a social media platform, is planning to sell a portion of its IPO shares to its users.
According to the report, the exact number of shares and users is still unknown, but it's expected to be for around 75,000 of its most frequent and popular users. The company plans to do this when it goes public next month.
Citing sources, the WSJ said the users will be able to buy Reddit shares at its initial public offering (IPO) price before the stock begins trading.
The move is aimed at building loyalty, but the WSJ said it also comes with a risk as if the stock falls on and after its debut, it could anger those members of the community.
Rumors about a Reddit IPO have been ongoing for some time, but it looks set to go ahead this year.
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