Reddit is considering an IPO valuation of up to $6.5 billion.

• According to a source, Reddit is aiming for a valuation of up to $6.5 billion during its upcoming IPO.
• In February, the company filed to become publicly traded on the New York Stock Exchange with the ticker symbol RDDT.
• The first major tech IPO of the year and the first social media IPO since Pinterest's Wall Street debut in 2019 will occur when Reddit goes public.

According to a source, Reddit is aiming for a valuation of up to $6.5 billion during its upcoming IPO.

The Wall Street Journal reported first that the company plans to price its IPO between $31 to $34 a share.

In February, Reddit announced its plans to go public and trade on the New York Stock Exchange using the ticker symbol RDDT.

According to PitchBook, Reddit had a private market valuation of $10 billion when it last raised a funding round of $1.3 billion in 2021.

In 2021, Reddit submitted a private draft of its prospectus to the Securities and Exchange Commission.

The company's annual revenue for 2023 was $804 million, a 20% increase from $666.7 million in 2022, and its net loss narrowed to $90.8 million from $158.6 million the previous year, according to its IPO prospectus.

Over $400 million would be the value of OpenAI CEO Sam Altman's shares at the top of the range, with him having invested at least $60 million in Reddit shares. Tencent and Advance Magazine Publishers, the parent company of Condé Nast, are also notable shareholders.

In 2006, Reddit was acquired by Condé Nast, but the social messaging company was spun out in 2011.

The upcoming Wall Street debut of Reddit marks the first major tech IPO of the year and the first social media IPO since 2019, amid a general cool down for IPOs due to interest rate concerns and global economic uncertainty.

In an interview in January, John Tuttle, the vice-chair of the New York Stock Exchange, stated that the IPO market would improve in 2024, with a strong pipeline of offerings from various sectors and regions.

Reddit's going public will "compel them" to become profitable.