Popular forum-style web service Reddit has made its initial public offering. 

In a significant moment for the technology and social media industry, Reddit has made its debut on the public market, hitting the upper reaches of its IPO price range.

The company's decision to price its shares at US$34 each led to a total raise of US$748 million. This move values Reddit at approximately US$5.4 billion, based on the total number of shares detailed in its SEC filings. 

However, when considering additional financial instruments like stock options and restricted share units, the valuation nudges closer to US$6.4 billion. The figure is lower than the US$10 billion valuation set during a funding round in 2021, which initially kicked off Reddit's IPO journey.

Despite the reduced valuation, Reddit's market entry is viewed as a bellwether for the tech industry's IPO climate. 

Founded in 2005, Reddit has evolved into a significant online platform, boasting an average daily active user base of 73.1 million in the last quarter. Despite a net loss of $91 million on revenues of $804 million in 2023, the company has shown an improving financial trajectory, reducing its losses from the previous year.

Reddit now faces the dual challenge of leveraging its vast user base for growth while navigating the platform's historically tumultuous relationship with its user community. This tension was highlighted by the WallStreetBets forum's initiative to short Reddit's stock, citing concerns over profitability and competition.

Steve Huffman, Reddit's co-founder and CEO, has expressed optimism in a letter to investors, emphasising the untapped potential for growth and the platform's attractiveness to advertisers seeking to reach a dedicated and elusive audience segment.