Reddit soars more than 50% in debut after high-end IPO pricing
Updates with opening price
** Social media platform Reddit RDDT.N jumps in hotly-anticipated public debut on Thurs after IPO priced at top of expectations
** RDDT opens at $47 vs $34 IPO price. Shares last up 58.2% at $53.80
** Reddit and existing shareholders sold 22 mln shares at top of $31-$34 range for $748 mln total raise
** IPO valued Reddit at $6.4 bln, well below $10 bln valuation in a fundraising round in 2021
** Reddit has lost money every year since its launch in 2005. In CNBC interview earlier today, CEO Steve Huffman said co made a profit in the back half of 2023
** Co reserved up to 8% (1.76 mln shares) for eligible users and moderators, certain board members and friends and family members of employees in "directed share program" (DSP)
** DSP purchasers are not subject to lock-ups, meaning they can choose to sell their shares immediately, which could stoke volatility in RDDT
** In addition to the DSP, a portion of IPO was made available to retail investors through digital brokerage platforms SoFi SOFI.O, Robinhood HOOD.O, Fidelity Investments and Morgan Stanley's E-Trade unit, per the SEC prospectus filing
** Morgan Stanley, Goldman Sachs, JP Morgan and BofA leading the IPO
(Lance Tupper is a Reuters market analyst. The views expressed are his own)
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