- Reddit went public on Thursday after raising $748 million in its IPO. Shares opened at $47 each.
- The 19-year-old social media company’s executives, founders, and investors stand to make millions.
- CEO Steve Huffman and Sam Altman and his network of investment firms are among who made the most.
Reddit is the most recent tech company to debut in the public markets as Wall Street watches to gauge the dormant IPO market.
The company, founded in 2005 by Steve Huffman and Alexis Ohanian, had been rumored to go public over the past several years. However, the market has been shaky during the last two years, making it less desirable to go public and causing several companies to put off pursuing an IPO.
Reddit sparked rumors in early 2022 that it planned to go public soon after confidentially filing for an initial IPO. But its initial potential timeline for March of that year came and went. By the summer, institutional investor Fidelity — which invests in Reddit and other companies via several mutual funds — had slashed the value of its shares in the elder startup by 40% since the beginning of the year.
The company’s filing with the Securities and Exchange Commission disclosed Reddit’s executives, directors, and longtime investors with stakes in the company, which are now worth millions.
Business Insider doesn’t know what these investors initially paid for their shares, so we can’t calculate their profit. But ahead of its IPO, Reddit’s shares were priced at $34 each, and they opened on the stock market at $47 per share. We used the latter share price to calculate the worth of the stakes after the IPO, though the actual value could change based on market volatility.
