Latham & Watkins’ Post

The strong start to 2024 continues for the U.S. #IPO market. Uniquely positioned at the intersection of community networking, information hub, and quasi-news outlet, media platform Reddit, Inc. has released some updates regarding it's long-anticipated IPO, which is set to take place on March 21. The San Francisco-based company that has caused all of us to go down bizarre information rabbit-holes for hours at a time has lofty goals for it's NYSE debut, aiming to sell 22 million shares and raise approximately $748 𝐦𝐢𝐥𝐥𝐢𝐨𝐧 based on a valuation of up to $6.5 𝐛𝐢𝐥𝐥𝐢𝐨𝐧. In a very Reddit-esque twist to reward loyal users, the company has also set aside about 1.76 million shares for certain users and moderators, aptly labeled "Redditors," who want to participate in the initial public offering. Perhaps the most interesting aspect of this pre-registration offering though is that Redditors won't be subject to the typical lock-up period that prevents most purchasers from selling shares for 6 months following the IPO--a twist that could cause some really interesting volatility when the opening bell tolls in ten days. Guiding the transaction will be the heavyweight #CapitalMarkets groups at Latham & Watkins (advising Reddit) and Davis Polk & Wardwell LLP (as underwriters' counsel). https://lnkd.in/eqGVEkY4

OpenAI's CEO Sam Altman is revealed to be one of Reddit's biggest shareholders, as disclosed in Reddit's IPO filing. Entities affiliated with Altman hold 8.7% of Reddit's outstanding shares, which includes 789,456 Class A shares and 11.4 million Class B shares. This makes Altman the third-largest shareholder in the company, behind Advance Publications (part of the Newhouse family publishing empire) with about a third of the voting power, and Chinese tech company Tencent. Altman's stake is significant, with 4.5% of Class A shares and 9.3% of Class B shares. The size of his stake was not previously known, although he was known to be an investor in Reddit. 

#newsmakeroftheday Reddit, Inc. launches long-awaited IPO with USD 748 million target Reddit and the holders are planning to sell 22 million shares for USD 31 to USD 34 each, the social media platform said in a filing. #internationalfinance #reddit #socialmedia #technology #ipo #business #finance #technews

Our Co-founder, Deiya Pernas, CFA, provided commentary for The Associated Press in this insightful article on Reddit's impending IPO! Thanks, AP, for the opportunity to contribute to the discussion. Check out the full story to learn about Reddit's unique approach to going public and the potential implications for investors. #Reddit #IPO #InvestingOpportunities #AssociatedPress https://lnkd.in/gkj9Ctsz

Reddit Inc. successfully raised $748 million through its initial public offering, with shares priced at $34 each, which places the company's market valuation at approximately $6.4 billion. In this significant financial milestone, Reddit offered 22 million shares to investors, and the shares will commence trading on the New York Stock Exchange under the ticker symbol RDDT. This IPO comes on the heels of Astera Labs Inc.'s successful offering, further energizing the IPO market for 2024. #Reddit #IPO #StockMarket #Finance #MarketTrends #FirstCover

How might Reddit, Inc.'s IPO impact the broader IPO market? EquityZen's Brianne Lynch explains, "A lot of private companies have been waiting for the 'hero' company to come out and have this vastly successful IPO and welcome others to follow...and what we're hearing from the heads of NYSE and Nasdaq is that there are lots of companies that are starting their roadshows and putting the pieces together to IPO. They are ready to IPO. Look at Reddit - this is a 19 year old company. There is both a liquidity need from early employees and shareholders and an access need from retail investors as well. If Reddit goes well there will be other companies that look to follow." More from her conversation with Caroline Hyde and Edward Ludlow on Bloomberg News here. https://bloom.bg/3ScCVdA

Reddit, Inc. and its investors are seeking to raise as much as $748 million in what would be one of the biggest #IPO so far this year https://lnkd.in/ddcBf_vX #socialmedia #ipos #ipoalert #iponews #ipoinvesting #iporeadiness #ipolisting #ipoupdate #investmentbanking #investments #investmentstrategy #investmentmanagement #investmentstrategies #investmentopportunities #investmentopportunity #investmentinsights #stocks #stockmarkets #stocktrading #stockmarketnews

Reddit Inc. has disclosed further details of what is set to be one of the year's biggest initial public offerings. Excited to see this IPO and what the exit landscape looks like this year in comparison to the last couple of years. #RedditIPO #finance #IPO #exits #privatemarkets

SPACs are a relatively new way for companies to go public and recent IPOs have shed light on the world of SPACs. https://buff.ly/3VO4Q6V 1️⃣ SPACs like DWAC raise concerns of inefficiency compared to Reddit's IPO due to longer investor wait times and unexpected turns, such as meme stock status. 2️⃣ While Reddit IPO hired high-priced bankers for efficiency, the DWAC process, which resulted in Trump Media, faced criticism for its prolonged and messy journey to going public. 3️⃣ DWAC raised $1.79 billion, Reddit $277 million, highlighting the conversation on IPO vs SPAC efficiency and potential implications for future markets.

Guess who we teamed up with?!   EA's CRO, Antoinette Behan, is moderating a panel with our friends at Orrick, Herrington & Sutcliffe LLP and Cowen Inc. on February 6th discussing capitalizing on 2024 Market Conditions and Governance Considerations.   We are going to take a deep dive into recent market happenings, legal considerations with the SEC and Stock exchanges, as well as alternative offerings. Join us as we explore these crucial topics and navigate the evolving landscape of public capital markets.   Click the link in the comments to register for the live event! Albert Vanderlaan Christopher Weekes #FileWithConfidence #CapitalMarkets #IPO #SEC #MergersAcquisitionsDivestitures #Lawyers #Future #Technology