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Reddit guides IPO may price at top of range or above, source says
(finance.yahoo.com)
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this post was submitted on 20 Mar 2024
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Pretty normal. They sell off a set % of the company's shared during an Initial Public Offering and set the share base price at their calculated expected valuation. Companies never sell off 100% of their shares. Reddit owns these shares and sets the sell price accordingly. Raising 750m would be selling about 11.5% stake if they think they're worth $6,500mil.
The market is not obligated to buy shares at Reddit's stated price. Once they're on the market shares can go up or down depending on how realistic the market thinks Reddit's stated valuation is. If they think the valuation is crap they'll not buy until the share price drops to their expected valuation.