Reddit prices IPO at top of indicated range to raise $748 million

Published

1 month ago

March 21, 2024

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Social media platform Reddit,priced its initial public offering at the top of its targeted range of $31 to $34 per share on Wednesday, raising $748 million and giving the ailing technology IPO market a much-needed boost.

The IPO priced 22 million shares sold by the company and its existing shareholders at $34 a share, giving Reddit a valuation of about $6.4 billion.

Excluding the shares sold by existing shareholders, Reddit raised gross proceeds of $519.4 million.

Reutersreported earlieron Wednesday that Reddit and its bankers were guiding they could price the IPO at the top of the indicated range or above.

The pricing of the IPO at the top of the range is a vindication of the company’s decision to lower its valuation expectations, after it was valued at $10 billion in a private fundraising round in 2021.

The successful offerings of Reddit andAstera Labs,could boost the lackluster tech IPO market after two years of largely subdued activity.

Earlier this year, the stock market launches of other big names including KKR-backed BrightSpring and sportswear brand Amer Sports received a lukewarm reception from investors.

In February, Reddit unveiled a $66 million contract to provide training data to Alphabet’s Google.

Redditsaid,last week the US Federal Trade Commission was conducting an inquiry focused on the company’s sale, licensing, and sharing of user-generated content with third parties to train artificial intelligence models.

Reddit’s shares are expected to start trading on the New York Stock Exchange on Thursday under the ticker “RDDT”.

Morgan Stanley, Goldman Sachs, JPMorgan Chase, and Bank of America are the lead underwriters for Reddit’s offering.

Politics

Polls to open for voters in England and Wales

Published

2 hours ago

May 2, 2024

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Polls to open for voters in England and Wales

Polls are to open for the local elections across the country, with the added extra of a by-election on the same day.

Over 2,600 council seats are up for grabs across 107 councils in England, along with 10 mayoralties in major cities and combined authorities, and 25 London Assembly seats.

A total of 37 police and crime commissioners will also be decided at ballot boxes in England and Wales.

And a new MP will be chosen for the seat of Blackpool South in a by-election.

Polling stations will be open from 7am until 10pm tonight, and as long as you are in the queue before closing time, you can have your say.

Voters need to bring along a form of photo ID after a change in the law last year – there are 22 types that fit the bill.

And to vote you must be 18 or over, be either a British, Irish or EU citizen, or from an eligible Commonwealth nation, and be registered.

The first of the counts will begin after voting closes tonight and Sky News will bring you all the updates as they happen from across the country.

Further counts will take place over the weekend, with the last results expected on Saturday night.

Politics

US probes Jack Dorsey’s Block, Inc. over financial transactions: Report

Published

2 hours ago

May 2, 2024

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US probes Jack Dorsey’s Block, Inc. over financial transactions: Report

U.S. prosecutors are reportedly investigating the fintech firm after a whistleblower claimed it processed thousands of transactions for users from sanctioned countries and terrorist groups.

Politics

John Swinney expected to declare bid to become new SNP leader

Published

4 hours ago

May 2, 2024

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John Swinney expected to declare bid to become new SNP leader

John Swinney is expected to declare his bid to become the new leader of the SNP later today, Sky News understands.

It comes after Humza Yousaf announced he was standing down as SNP leader and Scotland’s first minister following his decision last week to cut power-sharing ties with the Scottish Greens – a move which saw his leadership collapse.

Mr Swinney previously served as SNP leader between 2000 and 2004; later becoming Nicola Sturgeon’s number two from 2014 to 2023.

He is considered a front-runner for the top job once again, having garnered support from senior figures within his party, including from the SNP’s Westminster leader, Stephen Flynn.

The Perthshire North MSP is expected to make a statement in Edinburgh on Thursday morning.

However, he could face competition from the party’s former finance minister Kate Forbes, who narrowly lost out to Mr Yousaf in last year’s leadership election.

Though the Skye, Lochaber, and Badenoch MSP has not confirmed her intention to enter the leadership contest, she has so far refused to rule herself out of the race.

“I am still considering all the options, but I also know that there is a lot of support for me across the country and across the party, and last year proved that,” she told Sky News on Tuesday.

Read more from Sky News:
Scottish government survives vote of no confidence

It comes after the outgoing first minister, Mr Yousaf, was forced to resign following the breakdown of the Bute House Agreement.

Within hours of the power-sharing deal coming to an end, Mr Yousaf faced the threat of a no confidence vote in himself, and later from one in the Scottish government.

Mr Yousaf stepped down as Scotland’s first minister just after midday on Monday, saying he was “not willing to treat my values and principles or do deals with whomever simply for retaining power”.

He said he would remain in post until a replacement first minister was chosen.