Reddit prices shares at top end of IPO range

A hallway at Reddit’s office in New York. Reddit has priced its shares at $34 for its initial public offering. Photograph: Amy Lombard/New York TimesSocial media company Reddit has priced its shares at $34 ahead of its expected public debut in New York on Thursday, coming in at the top of previous price guidance, giving it a fully diluted valuation of $6.4 billion.

Based on the number of shares outstanding immediately after the IPO, the price implies a market capitalisation of $5.4 billion. Including options that are likely to be exercised, the value reaches $6.4 billion. Demand for the IPO had built during its roadshow, resulting in Reddit’s stock being more than 10 times subscribed, according to people familiar with the deal.But some investors voiced concern around the quality of orders that boosted deal demand, equating it to a “B” level book.

During its roadshow, Reddit said it planned to diversify its revenues, for example adding ecommerce features and selling its data to artificial intelligence groups.

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