The Nasdaq welcomes its latest IPO with social media site Reddit set to start trading.
NAS 100 – Daily Chart
Reddit will trade under the RDDT ticker and can take advantage of the recent highs in the NAS 100 index.
Reuters said that Reddit and its bankers predict that they will be able to price the Initial Public Offering (IPO) at the top of the indicated $31-34 range.
The San Francisco, California-based company is seeking a valuation of $6.5 billion. It will raise around $748 million for Reddit and its selling shareholders.
Reddit’s long-awaited arrival as a publicly traded company follows a listing for an IPO in 2021. The company sought a valuation of $15 billion, but a slowdown in tech stocks and IPOs caused a revision.
Shares were expected to trade with the RDDT ticker on Thursday, which will test the market’s appetite for new tech listings. The shares will likely bring some trading opportunities in their first weeks as traders seek a suitable price for the company.
Reddit became famous for causing some of the meme stock frenzy in 2020 and hopes to see a similar surge in its valuation.
The Nasdaq was higher on Thursday after the Federal Reserve held interest rates steady as predicted and the central bank’s press conference. Policymakers also projected three rate cuts in 2024, which aligns with their previous forecast.
