- Reddit unveiled how customers will qualify for precedence entry to purchase its inventory forward of its opening.
- Reddit customers and moderators will likely be sorted into considered one of six tiers, based on its IPO paperwork.
- One of many high tiers is open to customers with 200,000 karma or 5,000 moderator actions.
You will want an entire lot of karma or moderator expertise on Reddit if you’d like the prospect to purchase into the corporate’s inventory at its IPO value forward of its public debut.
Reddit’s IPO paperwork, which the corporate filed publicly on Thursday, outlines six tiers that the corporate will use to find out which of its greatest customers could have an opportunity to purchase its inventory by means of its directed share program. The submitting confirms an earlier report from The Wall Avenue Journal that the corporate plans to promote inventory early to pick out Redditors at its IPO value along with bigger cash managers — an uncommon transfer.
The primary tier consists of “sure customers and moderators recognized by us who’ve meaningfully contributed to Reddit neighborhood applications,” Reddit’s S-1 submitting with the SEC reads. The submitting does not say what number of shares will likely be reserved for Redditors.
From there, Redditors will qualify for various teams based mostly on their karma — a measure of how a lot a person’s posts and different actions on Reddit contribute to its message boards — or what they’ve contributed as a moderator.
Here is the entire breakdown of these tiers:
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Tier 1, for “sure customers and moderators recognized by us who’ve meaningfully contributed to Reddit neighborhood applications”
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Tier 2, for customers with no less than 200,000 karma or moderators with no less than 5,000 moderator actions of their previous
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Tier 3, for customers with no less than 100,000 karma or moderators with no less than 2,500 moderator actions
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Tier 4, for customers with no less than 50,000 karma or moderators with no less than 1,000 moderator actions of their previous
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Tier 5, for customers with no less than 25,000 karma or moderators with no less than 500 moderator actions of their previous
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Tier 6, for “all different eligible customers and moderators,” based on the IPO submitting
However qualifying for considered one of these tiers does not promise anybody Reddit inventory: If demand is nice sufficient, Reddit will put eligible customers on a waitlist, based on the submitting.
This system is open to Reddit customers and moderators who’re US residents, no less than 18 years of age, and who opened their account “on or earlier than January 1, 2024,” the submitting reads.
As much as 75,000 Redditors could have entry to the directed share program in March, the Journal reported Wednesday.
Providing inventory to customers is an uncommon technique within the IPO world. However Reddit is not the primary firm to do it. Inventory buying and selling app Robinhood let its customers purchase as much as 35% of its shares early in 2021.
Are you among the many Redditors with sufficient karma or moderator actions to get in early on its IPO? Attain out to this reporter at abitter@insider.com
