Reuters 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 muchneeded boost.

Reddit and its existing shareholders sold 22 million shares at 34 a share, giving Reddit a valuation of about 6.4 billion.

To tap retail investors, Reddit reserved 8 of the total shares on offer for eligible users and moderators on its platform, certain board members and friends and family members of its employees and directors.

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

The topend pricing is a vindication of the company39;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 and Astera 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 KKRbacked BrightSpring and sportswear brand Amer Sports received a lukewarm reception from investors.

LOYAL USER BASE

Despite the loyalty of many of its users, Reddit has lost money every year since its launch in 2005 and has lagged the commercial success of contemporaries such as Meta…