10:46 AM EDT, 03/11/2024 (MT Newswires) -- Social media platform Reddit set out an expected price range for its initial public offering that would raise up to $748 million at the top end of that range, according to a filing on Monday.

The company, which disclosed last month its plan to go public, said a total of 22 million class A shares will be sold at an estimated price range of $31 to $34 per share, according to a Securities and Exchange Commission filing. Reddit will sell roughly 15.3 million of the shares while selling stockholders will offer the remaining 6.7 million shares. The company has also granted underwriters a 30-day option to buy an additional 3.3 million class A shares.

Reddit expects to have nearly 159 million shares outstanding following the offering, giving it a potential valuation of about $5.41 billion based on the high-end of the IPO price, according to MT Newswires calculations. Should underwriters purchase the additional shares on offer, the valuation will be up to $5.52 billion.

Reddit estimates net proceeds of about $450.9 million, or $552.7 million if underwriters fully exercise their over-allotment option from the sale of the shares offered in the IPO, based on the per-share midpoint price of $32.50. The company's shares are expected to trade on the New York Stock Exchange under the RDDT ticker after the IPO.

The forum-based website and app, which was founded in 2005, may use some of the proceeds from the offering to in-license, acquire, or invest in complementary technologies, assets, or intellectual property. The platform added that it will not receive any proceeds from the sale of the shares by selling stockholders.

Reddit has raised $1.87 billion so far in nine disclosed rounds from 14 investors, according to Capital IQ data. It completed its last funding round in September 2021, giving it a post-money valuation of $10.03 billion.

For the three-month period ended Dec. 31, the company reported net income of $18.5 million, compared with a loss of $22.2 million a year earlier. Revenue was $249.8 million, up from $200.4 million in the 2022 quarter.

The company has more than 100,000 active communities, which are usually described as "subreddits." The platform had an average of 73.1 million daily active unique visitors and 267.5 million weekly unique users at the end of December, according to the filing.