Reddit IPO: Users Get Priority as Shares Become Available

The social media platform Reddit has submitted its initial public offering (IPO) paperwork to the Securities and Exchange Commission, officially applying for a public listing and to be traded on the New York Stock Exchange after years of speculation.

It was revealed on Thursday afternoon that, unlike typical company IPOs which are primarily participated in by investors, some of Reddit’s moderators and users will be given the opportunity to partake in the offering through a directed share program.

According to The Wall Street Journal, the company has set aside an unspecified number of shares for its users and moderators based on their contributions and engagement on the platform.

The filing with the SEC showed that Reddit made $804 million in revenue last year, up from $666 million the previous year, but it recorded a net loss of $90.8 million, which is a decrease from a $158.6 million loss the year before.

Reddit is in contact with its eligible members, inviting them to preregister for the “directed share program”, and sending a message to qualified users that reads, “Because you helped make Reddit what it is today, you now have the chance to become an owner at the same investor price.”

The platform was created in 2005, boasting 73 million unique active users daily and over 100,000 active communities.

Thursday’s filing also revealed that Sam Altman, the CEO of OpenAI, is Reddit’s third-largest shareholder, with entities linked to him owning 8.7% of Reddit’s shares.