Reddit, the popular social media company, is planning to raise nearly $750 million in its upcoming initial public offering (IPO) of common stock. The company disclosed in a regulatory filing that the IPO will consist of 22 million shares of Class A common stock, with approximately 15.3 million shares being offered by Reddit itself and about 6.7 million shares being offered by selling stockholders.

Reddit is aiming to price the IPO between $31 and $34 per share, which would allow the company to raise around $451 million at the midpoint of that range. The funds raised will be used for general corporate purposes, taxes, and potentially for acquisitions. Additionally, the underwriters have set aside up to 1.76 million shares for sale at the IPO price through a directed share program to eligible users and members of its platform, certain board members, and friends and family of specific employees and directors.

Furthermore, the underwriters have the option to purchase an additional 3.3 million shares to cover any overallotments. Reddit, founded in 2005, boasts an impressive user base with more than 76 million people visiting the platform daily in December and over 100 million unique subreddits.

In a letter included in the filing, co-founder Steve Huffman revealed that Reddit reported a net income of $18.5 million in the October-December quarter - marking its first profit in two years - on revenue of $249.8 million, primarily driven by advertising. The company also recently secured a deal with Google worth approximately $60 million, allowing the tech giant to utilize posts from Reddit for training its artificial intelligence models and enhancing services like Google Search. In return, Reddit will have access to Google's AI models to improve its internal site search and other features.

Reddit's shares are set to be listed on the New York Stock Exchange under the ticker symbol “RDDT” as the company prepares to enter the public market with high expectations.