Reddit sets IPO price at $34 per share, marking the first major social media offering since 2019.

• On Wednesday, Reddit set its IPO price at $34 per share, giving it a valuation of approximately $6.5 billion.
• The company priced at the upper end of its anticipated range, which was $31 to $34 per share.
• Investors are closely monitoring Reddit's debut following an IPO dry spell.

On Wednesday, the 19-year-old website Reddit, which hosts millions of online forums, set its IPO price at $34 a share, the top of the anticipated range.

According to a press release, the offering generated $519 million and valued the company at approximately $6.5 billion. Reddit had intended to set the price range for the deal between $31 and $34 per share.

On Thursday, Reddit will make its public market debut under the ticker symbol "RDDT," marking the first time a major social media company has gone public since 2019 and one of the few venture-backed tech deals of the past two years.

In 2022, due to soaring inflation and rising interest rates, investors left risky assets, causing startups to reduce their valuations and prioritize profit over growth.

On Wednesday, a data center hardware company went public and experienced a 72% increase in share prices due to investor interest in artificial intelligence.

Online advertising on Reddit faces competition from major players like Google and Facebook.

In 2022, revenue increased by 20% from $666.7 million to $804 million, while its net loss in 2023 was $90.8 million, a significant improvement from the $158.6 million net loss recorded in the previous year.

While Reddit sold 15.28 million shares, existing shareholders sold an additional 6.72 million.

WATCH: What a Reddit IPO would mean for capital markets.