Reddit, the popular social media platform known for its lively discussions and diverse user base, is set to go public with an initial public offering (IPO) that values the company at up to $6.4 billion. This IPO is unique in that Reddit is offering shares not only to institutional investors and fund managers but also to its contributors - the “Redditors” who comment on its boards and the moderators who manage them.

The details of the IPO reveal that Reddit plans to list 22 million shares at a price between $31 and $34, potentially raising between $473.6 million and $519.4 million. Existing investors will also sell an additional 6.7 million shares, raising between $208.4 million and $228.6 million. What sets this IPO apart is that Reddit will sell up to 1.76 million shares to certain board members, employees, and even "friends and family members" without lock-up agreements, allowing them to sell their shares immediately.

However, this setup comes with risks, including potential share-price volatility. The influx of shares into the market from Redditors and moderators could lead to a surge in demand and subsequent decline, as seen with Robinhood Markets' IPO. There is concern that mishandling this process could alienate Reddit's most ardent supporters.

For those hoping to get in on the offering, only users with established accounts as of January 1, 2024, will be eligible to participate. Shares will be distributed based on users' contributions to the platform, with high karma scores and significant moderator actions determining priority tiers for access to the stock offering. While there is no guarantee of being able to purchase shares, Reddit has emphasized that anyone not awarded a chance can join a waitlist for future opportunities.