Tag Archives: IPOs

Reddit is now a publicly traded company

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Nineteen years after its debut, Reddit is now a publicly traded company. It was listed on the New York Stock Exchange as RDDT for the first time on Thursday, with mascot Snoo on hand to ring the opening bell.

The company aimed to sell 15.3 million shares at $34 a pop to raise around $519.4 million. Stockholders collectively planned to sell 6.7 million shares in the IPO for a total of $228.6 million (Reddit itself wouldn't see any of that money though). The IPO price values Reddit at just under $6.5 billion.

The sale’s underwriters also have the option to buy 3.3 million shares at the IPO price over the next 30 days. So if the stock soars over the next few weeks, the underwriters can pick up shares relatively cheaply. If all those sell, Reddit will pull in another $112.2 million or so. One other interesting aspect of Reddit going public is that it invited long-term users in good standing the chance to snap up shares at the IPO pricing over the last few weeks.

It’s been a long road for Reddit to go public, and it’s doing so long after many of its peers (the last major social media IPO was Pinterest back in 2019). Conde Nast bought Reddit in 2006, just over a year after the platform went live, and spun it back out as an independent subsidiary in 2011. Reddit first filed for an IPO in 2021.

The company has had plenty of controversies to address during its run. Last year, users protested against the company's decision to start charging for API access, effectively killing some third-party apps that hooked into the platform. Thousands of subreddits went private and/or stopped letting users post for a while. Indeed, in its S-1 filing, Reddit notes the importance of its users, stating that if "engagement declines, our business, results of operations, financial condition and prospects will be harmed."

Most recently, Reddit signed a deal with Google said to be worth $60 million a year to train the latter’s AI models on user-generated content. Reddit later said the Federal Trade Commission was looking into the arrangement.

This article originally appeared on Engadget at https://www.engadget.com/reddit-is-now-a-publicly-traded-company-144455403.html?src=rss

Reddit is now a publicly traded company

Posted on by

Nineteen years after its debut, Reddit is now a publicly traded company. It was listed on the New York Stock Exchange as RDDT for the first time on Thursday, with mascot Snoo on hand to ring the opening bell.

The company aimed to sell 15.3 million shares at $34 a pop to raise around $519.4 million. Stockholders collectively planned to sell 6.7 million shares in the IPO for a total of $228.6 million (Reddit itself wouldn't see any of that money though). The IPO price values Reddit at just under $6.5 billion.

The sale’s underwriters also have the option to buy 3.3 million shares at the IPO price over the next 30 days. So if the stock soars over the next few weeks, the underwriters can pick up shares relatively cheaply. If all those sell, Reddit will pull in another $112.2 million or so. One other interesting aspect of Reddit going public is that it invited long-term users in good standing the chance to snap up shares at the IPO pricing over the last few weeks.

It’s been a long road for Reddit to go public, and it’s doing so long after many of its peers (the last major social media IPO was Pinterest back in 2019). Conde Nast bought Reddit in 2006, just over a year after the platform went live, and spun it back out as an independent subsidiary in 2011. Reddit first filed for an IPO in 2021.

The company has had plenty of controversies to address during its run. Last year, users protested against the company's decision to start charging for API access, effectively killing some third-party apps that hooked into the platform. Thousands of subreddits went private and/or stopped letting users post for a while. Indeed, in its S-1 filing, Reddit notes the importance of its users, stating that if "engagement declines, our business, results of operations, financial condition and prospects will be harmed."

Most recently, Reddit signed a deal with Google said to be worth $60 million a year to train the latter’s AI models on user-generated content. Reddit later said the Federal Trade Commission was looking into the arrangement.

This article originally appeared on Engadget at https://www.engadget.com/reddit-is-now-a-publicly-traded-company-144455403.html?src=rss

ARM registers for US initial public offering

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ARM has registered for a US stock market listing. In a press release published Saturday, the mobile chip company said it recently confidentially submitted a draft F-1 form to the Securities and Exchange Commission. According to Reuters, ARM hopes to raise between $8 billion and $10 billion dollars when it holds the initial public offering later this year, though over the weekend the company said it had yet to determine the size and price range of the proposed IPO.

ARM parent company SoftBank has been eyeing a public listing ever since NVIDIA’s $40 billion bid to buy the chip maker fell through at the start of last year due to regulatory resistance from the US Federal Trade Commission and other antitrust watchdogs. In March, SoftBank said it would list ARM on the US stock market after rebuffing a push for a London listing from the United Kingdom government. ARM designs the processor components used in almost every mobile device, including models from Apple and Samsung. Its licensing model means nearly every tech company depends on ARM designs. According to a recent Financial Times report, the company recently began work on a prototype chip that is “more advanced” than any semiconductor produced in the past.

This article originally appeared on Engadget at https://www.engadget.com/arm-registers-for-us-initial-public-offering-201942271.html?src=rss

Intel-owned autonomous driving tech company Mobileye files for an IPO

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Mobileye, the self-driving tech firm that Intel had purchased for $15.3 billion back in 2017, has filed for an IPO with the Securities and Exchange Commission. When Intel first announced its plans to take Mobileye public late last year, the autonomous driving firm was expected to have a valuation of over $50 billion. Now according to Bloomberg, Intel expects Mobileye to be valued at around $30 billion, due to soaring inflation rates and poor market conditions. Regardless, it's still bound to become one of the biggest offerings in the US for 2022 if the listing takes place this year. 

Intel intends to retain a majority stake in Mobileye, but Chief Executive Pat Gelsinger previously said that taking it public would give it the ability to grow more easily. He also said that the company plans to use some of the funds raised from the IPO to build more chip factories. Intel revealed its big and bold foundry ambitions in 2021 when it announced that the company is investing $20 billion in two Arizona fabrication plants. Back then, Gelsinger even proclaimed that he was pursuing Apple's business. Earlier this year, the CEO revealed earmarking another $20 billion to build two fabrication plants in Columbus, Ohio. The company expects that facility to eventually become "the largest silicon manufacturing location on the planet."

Mobileye didn't specify how much a share would cost in its filing with the SEC. It did say, however, that it will use portion of the proceeds it will get from the IPO to pay debts. The firm also talked about its history in the filing and how its revenue grew from $879 million in 2019 to $1.4 billion in 2021, representing a growth of 43 percent year-over-year. 

Intel-owned autonomous driving tech company Mobileye files for an IPO

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Mobileye, the self-driving tech firm that Intel had purchased for $15.3 billion back in 2017, has filed for an IPO with the Securities and Exchange Commission. When Intel first announced its plans to take Mobileye public late last year, the autonomous driving firm was expected to have a valuation of over $50 billion. Now according to Bloomberg, Intel expects Mobileye to be valued at around $30 billion, due to soaring inflation rates and poor market conditions. Regardless, it's still bound to become one of the biggest offerings in the US for 2022 if the listing takes place this year. 

Intel intends to retain a majority stake in Mobileye, but Chief Executive Pat Gelsinger previously said that taking it public would give it the ability to grow more easily. He also said that the company plans to use some of the funds raised from the IPO to build more chip factories. Intel revealed its big and bold foundry ambitions in 2021 when it announced that the company is investing $20 billion in two Arizona fabrication plants. Back then, Gelsinger even proclaimed that he was pursuing Apple's business. Earlier this year, the CEO revealed earmarking another $20 billion to build two fabrication plants in Columbus, Ohio. The company expects that facility to eventually become "the largest silicon manufacturing location on the planet."

Mobileye didn't specify how much a share would cost in its filing with the SEC. It did say, however, that it will use portion of the proceeds it will get from the IPO to pay debts. The firm also talked about its history in the filing and how its revenue grew from $879 million in 2019 to $1.4 billion in 2021, representing a growth of 43 percent year-over-year. 

Lyft will pay $25 million to settle claims it hid safety issues before its IPO

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Lyft has agreed to pay $25 million to settle shareholders' allegations that it failed to disclose safety issues in its Initial Public Offering (IPO) paperwork. According to Reuters, shareholders accused the company of concealing known problems, such as sexual assaults by its drivers, to cultivate an image of a more socially responsible alternative to Uber. They also accused Lyft of not disclosing safety issues regarding its bikeshare program, specifically the problem the company faced with its brakes that forced it to pull its bikes from various cities in the US. While Lyft has agreed to settle, it denied any wrongdoing. In a statement sent to CNN Business, company spokesperson Gabriela Condarco-Quesada said:

"This settlement resolves a shareholder class action related to statements in Lyft's initial public offering and its financial impact on investors — it's not about safety-related claims on the platform."

In their complaint, the shareholders said reports of sexual assaults by Lyft drivers that came out after the IPO represented an "existential risk" to the brand that should have been disclosed beforehand. Further, they said Lyft used promotions to boost its market share against Uber. 

Lyft officially filed to go public in 2019, but it wasn't until 2021 that it had published its first safety report. In it, the ride—hailing firm revealed that it received a total of 4,158 sexual assault reports from 2017 until 2019. Lyft divided the cases in different categories for its report, with the most common incidents falling under the non-consensual touching of a sexual body part category. It's worth noting, however, that the money for this settlement will go to shareholders and not to any of the passengers who reported being sexually assaulted by the firm's drivers.

Lyft will pay $25 million to settle claims it hid safety issues before its IPO

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Lyft has agreed to pay $25 million to settle shareholders' allegations that it failed to disclose safety issues in its Initial Public Offering (IPO) paperwork. According to Reuters, shareholders accused the company of concealing known problems, such as sexual assaults by its drivers, to cultivate an image of a more socially responsible alternative to Uber. They also accused Lyft of not disclosing safety issues regarding its bikeshare program, specifically the problem the company faced with its brakes that forced it to pull its bikes from various cities in the US. While Lyft has agreed to settle, it denied any wrongdoing. In a statement sent to CNN Business, company spokesperson Gabriela Condarco-Quesada said:

"This settlement resolves a shareholder class action related to statements in Lyft's initial public offering and its financial impact on investors — it's not about safety-related claims on the platform."

In their complaint, the shareholders said reports of sexual assaults by Lyft drivers that came out after the IPO represented an "existential risk" to the brand that should have been disclosed beforehand. Further, they said Lyft used promotions to boost its market share against Uber. 

Lyft officially filed to go public in 2019, but it wasn't until 2021 that it had published its first safety report. In it, the ride—hailing firm revealed that it received a total of 4,158 sexual assault reports from 2017 until 2019. Lyft divided the cases in different categories for its report, with the most common incidents falling under the non-consensual touching of a sexual body part category. It's worth noting, however, that the money for this settlement will go to shareholders and not to any of the passengers who reported being sexually assaulted by the firm's drivers.

Reddit files with the SEC to go public

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Reddit has taken a big step towards going public. In a press release, the company has revealed that it has confidentially submitted a draft registration statement with the US Securities and Exchange Commission regarding "the proposed initial public offering of its common stock." The announcement offers very little detail about its planned IPO, which is expected to take place after the SEC's approval. 

The social network also said that it has yet to determine how many shares will be offered and for how much. It will likely reveal an initial valuation in the near future as it prepares for an IPO, but it's worth noting that it raised $700 million in a funding round back in August at a valuation of over $10 billion. 

According to Reuters, Reddit sought to hire investment bankers and lawyers in September as advisers for a planned IPO in New York. While the IPO's timing will depend on market conditions, Reddit was apparently hoping that the company will be valued at over $15 billion by the time it takes place next year. In March, the company also hired hired Drew Vollero, who led Snap's IPO back in 2017, as its first chief financial officer.

Reddit was founded in 2005 and has shot up in popularity as a news aggregator, messaging board and social media website since then. In the second quarter of this year, it generated $100 million in advertising revenue — 192 percent more than what it generated in the same period of 2020 — for the first time. Going forward, it intends to find more way to incorporate video and audio into its website, which could lead to even bigger ad earnings.

Reddit files with the SEC to go public

Posted on by

Reddit has taken a big step towards going public. In a press release, the company has revealed that it has confidentially submitted a draft registration statement with the US Securities and Exchange Commission regarding "the proposed initial public offering of its common stock." The announcement offers very little detail about its planned IPO, which is expected to take place after the SEC's approval. 

The social network also said that it has yet to determine how many shares will be offered and for how much. It will likely reveal an initial valuation in the near future as it prepares for an IPO, but it's worth noting that it raised $700 million in a funding round back in August at a valuation of over $10 billion. 

According to Reuters, Reddit sought to hire investment bankers and lawyers in September as advisers for a planned IPO in New York. While the IPO's timing will depend on market conditions, Reddit was apparently hoping that the company will be valued at over $15 billion by the time it takes place next year. In March, the company also hired hired Drew Vollero, who led Snap's IPO back in 2017, as its first chief financial officer.

Reddit was founded in 2005 and has shot up in popularity as a news aggregator, messaging board and social media website since then. In the second quarter of this year, it generated $100 million in advertising revenue — 192 percent more than what it generated in the same period of 2020 — for the first time. Going forward, it intends to find more way to incorporate video and audio into its website, which could lead to even bigger ad earnings.