Matthew Fry and Rosebud Nau Gain Media Coverage in Wake of Reddit IPO

March 22, 2024

Reddit priced its $748 million IPO on March 21. Haynes and Boone, LLP Partners Matthew Fry and Rosebud Nau spoke to news outlets about the state of the IPO market as well as the unique directed-share program which allowed heavy users of the site to purchase shares before it began publicly trading.

Read excerpts of their conversations below:

Yahoo! Finance – “Why Reddit’s IPO Won’t Spark a Boom in Companies Going Public

It was all about Special Acquisition Companies, also known as simply "SPACs." When removing SPACs, the skyrocket of IPOs in 2021 looks less outsized compared to historical averages, Matt Fry, chair of the capital markets and securities practice group at law firm Haynes and Boone, pointed out.

Fry noted SPACs have since "largely fizzled out," and believes more companies will seek a traditional IPO moving forward as a way to raise capital for their business. …

"Reddit is a big enough name, a household name, that it could open the market for other companies," said Fry, whose law firm works with companies going public. "We're definitely seeing a lot of inbound interest on IPOs. But it really is a wait-and-see approach from companies."

Fortune – “Inside the Growing Trend Championed by Reddit of Companies Offering Risky IPO Shares to Their Users

“Reddit is about community,” said Rosebud Nau, capital markets lawyer and partner at Haynes Boone. “There could be concern about if the IPO will change the nature of Reddit and how that could impact the community. Maybe giving people the opportunity to participate helps maintain that community feel.” …

“If the stock price increases and [users are] able to sell for a profit, you’ve rewarded these people who are important to you,” Nau told Fortune. “On the flip side, if the stock price falls, you could generate animosity among those who participated—some of your most loyal customers or users.”

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