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Reddit’s (RDDT) initial public offering is between four and five times oversubscribed, Reuters reported Sunday, citing people familiar with the matter. The demand for the shares likely will help the social media platform to reach its goal for a valuation of $6.5 billion.
The company is poised to reach a price range of $31 to $34 a share when the IPO is priced in New York on Wednesday, the sources said. Oversubscription isn’t necessarily an indicator of the stock’s performance.
The marketing of the IPO is still ongoing, Reuters reported, citing sources who asked not to be named because the information is non-public.
Reddit (RDDT) had lowered its expectations after being valued at $10 billion in a private fundraising round in 2021. The IPO seeks to raise as much as $748 million.