Reddit IPO: How to Buy Reddit Stock?

Reddit IPO: What You Need to Know

Reddit is one of the most popular social media platforms, especially for crypto enthusiasts. It was founded in 2005 by Alexis Ohanian and Steve Huffman. Recently on February 22, 2024, Reddit filed an S-1 filing for its IPO to get an approval from the US SEC.

The file revealed that Reddit moderators and users can also participate in the IPO through a directed share program. The fact that users of a social media platform have the chance to participate in its IPO is rare and is probably happening for the first time.

The file mentioned that Reddit users have a deep sense of ownership over their communities on the platform. And, the social media platform would like to extend their support by allowing the sense of ownership to reflect in the real ownership of their shares. Thus, Reddit plans to offer the ownership of their shares to their users, making them owners.

Usually, institutional investors participate in initial public offerings (IPOs) of companies. This is not the scenario when it comes to the present Reddit IPO. The fact that Reddit is allowing its users to participate in the IPO is noteworthy in the industry. Reddit plans to reserve its shares for 75,000 top users based on their “Reddit Karma.”

When the Reddit IPO is Going to Take Place?

The Reddit IPO filing took place very recently and no information about when the IPO is going to be conducted is released. Based on some sources, Reddit revealed that the IPO is going to be launched in March this year. The social media platform has been planning for more than 3 years to launch its IPO. And, it is finally coming to reality in 2024.

Reddit filed its first confidentiality to launch its IPO in December 2021 and planned to launch the offering by the end of March in 2022. However, it held off its offering for various reasons. With its recent S-1 filing, Reddit is going to trade on New York Stock Exchange under the ticker symbol RDDT. However, the exact date and timings of the Reddit IPO are yet to be released.

How to Buy Reddit IPO?

All you need to have to participate in the Reddit IPO is a brokerage account or investment account on platforms that list Reddit IPO. Since the platform announced that it is going to launch its IPO on New York Stock Exchange, having an account on NYSE will help you participate in the IPO without any hassle.

There are different types of investment accounts such as Standard brokerage accounts, retirement accounts, kids investment accounts, education accounts, and ABLE accounts. You can choose to get a Standard brokerage account or other ones based on your preferences.

It is recommended that you open an account on NYSE before the Reddit IPO goes live and add money. This helps you be prepared with your account and funds to participate in the IPO as soon as it gets launched.

Additionally, some brokerage platforms also allow you to participate in the Reddit IPO. However, you must do a thorough research and understand various factors such as minimum deposit, fee structure, security and reliability of the platform, etc.

Who is Eligible to Participate in the Reddit IPO?

If you are an avid user of Reddit and are one of the top “Redditors”, you would get the chance to be one of the top 75,000 people to buy the shares in the IPO. However, if you are not one of those, you would have to wait to get Reddit shares.

As we mentioned before, the Reddit IPO is allowing the users of the social media platform to participate in the IPO. It is even reserving some shares for the top 75,000 users of the platform. The criteria to be in the list of these 75,000 users is to have more amount of “Reddit Karma”. Either the users have to have the Reddit Karma or they have to be Reddit moderators.

The Reddit platform outlined six tiers in its filing to select the top users of the platform.

• The first tier consists of users and moderators who meaningfully contributed to Reddit community programs.
• Second tier users should have at least 200,000 karma points with at least 5,000 moderator actions in the past.
• The third tier is dedicated to users with 100,000 karma points with at least 2,500 moderator actions
• Fourth tier considers users with 50,000 karma points and 1,000 moderator actions.
• The fifth tier consists of users with 25,000 karma points and 500 moderator actions.
• The last and sixth tier is for all other eligible users and moderators on the social media platform.

Since the Reddit IPO filing took place very recently, we need to wait a little bit longer to get complete details of the IPO about participation.