When Reddit prepared to go public, it needed a partner to build a roadmap for growth that also reflected its roots in the community it had built. Reddit’s users had been at the heart of its growth, and it was important to the company’s leadership that its users had a way to become owners. Morgan Stanley’s Investment Banking, Wealth Management and Morgan Stanley at Work teams worked together to help lay the foundation for Reddit’s next phase, across its IPO and equity strategies for employees and key stakeholders.
Put Clients First
Designing Reddit’s IPO: Prioritizing the Mission, Employees, Community and Growth
Learn how Morgan Stanley worked with Reddit to design an IPO to meet Reddit’s objectives: promoting community ownership, raising capital and offering liquidity to the employees who worked to build Reddit.
We took Reddit public to advance our mission of empowering communities, and making their knowledge accessible to everyone. It was a defining moment in our 20-year journey. Morgan Stanley was a key partner throughout—helping us manage the IPO, support employee liquidity, and offer users and moderators a chance to own a piece of Reddit through our directed share program.
Reddit Co-Founder and CEO
Reddit's Story
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Reddit is a community of communities. It’s built on shared interests, passion and trust and is home to the most open and authentic conversations on the internet.
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Every day, Reddit users submit, vote and comment on the topics they care most about. With 100,000+ active communities and 101+ million daily active unique visitors, Reddit is one of the internet’s largest sources of information.
The multiplier effect of Morgan Stanley being able to deliver for Reddit across its IPO, stock plan and directed share program put the firm in the best position to build the foundation for Reddit’s long-term growth.
Head of Global Internet Investment Banking
We started working with Reddit on its IPO in 2021 and worked closely with them to achieve a successful IPO in 2024. In between, we helped Reddit navigate choppy markets that included high inflation and global conflicts. The success of the IPO, despite the challenging market backdrop, is a testament to the business that the Reddit team has built over two decades, and it was a privilege for our entire team to work hand in hand with the Reddit team on every aspect of the IPO.
Head of Equity Execution in Technology Investment Banking
Key Highlights
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Reddit’s $860 million IPO was one of the largest internet IPOs of all time.
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Morgan Stanley served as Lead Left Bookrunner, Stabilization Agent and Billing & Delivery Agent on the IPO.
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Morgan Stanley managed the directed share program (DSP) for the IPO, allowing users to directly purchase shares, and also coordinated the retail tranche of the offering.
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Morgan Stanley Corporate Cash Management helped Reddit manage the proceeds of the IPO to optimize liquidity and minimize financial risks.
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Before the IPO, Morgan Stanley’s Executive Financial Services and Private Wealth teams provided financial education, support and advice to Reddit’s executives and employee base.
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Morgan Stanley at Work has managed Reddit’s Stock Plan Administration since 2018.
A typical DSP can include a mix of employees, customers and/or friends and family of the issuer. For Reddit, Morgan Stanley designed a custom program for their users and moderators, known as Redditors.
Head of Integrated IPO Solutions in Strategic Client Management
Our partnership with Reddit is a prime example of customizing the full Morgan Stanley offering for a world-class company seeking to scale their business. Through seamless partnership across Investment Banking, Wealth Management and Capital Markets, we delivered tailored solutions to Reddit communities and created unique value across Reddit's IPO process.
Head of Global Client Coverage
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Participating in a new issue/syndicate is subject to availability. IPOs are highly speculative and may not be appropriate for all investors because they lack a stock-trading history and usually involve smaller and newer companies that tend to have limited operating histories, less- experienced management teams, and fewer products or customers. Also, the offering price of an IPO reflects a negotiated estimate as to the value of the company, which may bear little relationship to the trading price of the securities, and it is not uncommon for the closing price of the shares shortly after the IPO to be well above or below the offering price.
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