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

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

Excluding shares sold by existing shareholders, Reddit raised gross proceeds of USD 519.4 million. Reuters reported earlier on Wednesday that Reddit and its bankers were guiding they could price the IPO at the top of the indicated range or above.

Pricing the IPO at the top of the range is a vindication of the company's decision to lower its valuation expectations, after valuing it at USD 10 billion in a private fundraising round in 2021.

Blockbuster offerings from Reddit and Astera Labs could boost a lackluster tech IPO market after two years of largely subdued activity. Earlier this year, stock market launches by other big names, including KKR-backed BrightSpring and sportswear brand Amer Sports, received a lukewarm reception from investors.

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

Reddit said last week that 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 begin 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.

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