Reddit to raise nearly $750 million in an IPO and offer shares to Redditors. Here's how it will work.

Reddit said it's aiming to raise $748 million in its initial public offering, which will also offer shares to the social media company's users and moderators as a way to allow them to participate in the stock sale. 

In a regulatory filing on Monday, Reddit said it will sell about 22 million shares priced about $31 to $34 each. Based on its total number of shares outstanding, the transaction would value Reddit at $5.4 billion.

Reddit's IPO, while typical for a tech company seeking to raise more money to fuel its expansion, is unusual in that it's setting aside a significant number of shares to offer its own users. In the company's filing, CEO Steve Huffman noted that the service was built on the efforts of its community, such as moderators and users, and that Reddit wants them to be able to participate in publicly owning the business.