Reddit on Monday disclosed that it plans to raise up to $748 million in its initial public offering, at up to a $6.4 billion valuation.

Why it matters: It would be the first U.S. social media company to go public since Pinterest in 2019.

Zoom in: Reddit filed to offer 22 million shares — including 15.3 million Class A common shares and 6.7 million shares from insiders like CEO Steve Huffman and COO Jen Wong — at between $31 and $34 per share.

• At those terms, the IPO would raise between $682 million and $748 million, at a fully diluted valuation of between $5.8 billion and $6.4 billion.
• The proposed market cap would be between $4.9 billion and $5.4 billion.
• Reddit also said that it will launch a dedicated subreddit (/RDDT) for users to ask questions about the offering. Kind of like an AMA, but with a lot more lawyers involved.

Zoom out: Reddit first filed to go public via a confidential submission in late 2021.

The bull case: Reddit turned a profit in the fourth quarter of 2024, and opened a new revenue stream by selling data to AI companies.

• It also has fanatical users, some of whom are being offered a chance to buy in at the IPO price.

The bear case: That Q4 profit was an exception to Reddit's historical rule, and AI-enabled search may eventually eat into Reddit's traffic.

• Plus, users could become unruly if Reddit stock falls below the IPO price.

What's next: Reddit is likely to go public next week.