Robinhood set for stock market debut on July 29: How to invest in this meme stock

Summary

  • Trading app Robinhood is set to make a debut on the American stock exchange on July 29.
  • The crypto trading platform will be listed on the NASDAQ under the ticker name “HOOD”.
  • The brokerage firm has raised US$2.1 billion at an expected market valuation of US$32 billion.

After successfully completing its initial public offering (IPO), online crypto trading platform Robinhood is all set to make its highly-anticipated stock market debut on July 29. The millennial-favoured trading app, which claims to have 22.5 million users, will be listed on the NASDAQ Stock Market under the ticker name “HOOD”.

Robinhood Markets Inc, the owner of the trading app, has raised US$2.1 billion at an expected market valuation of US$32 billion. The company issued 55 million shares at an offer price of US$38 apiece, which is the low end of its price band (US$38-US$42), as per a Reuters report.

Also Read: Robinhood seeks US$35B valuation in mega US offer

This is touted to be one of the biggest stock listings in the United States this year. Earlier this year, some big players like cryptocurrency trading platform Coinbase Global Inc (NASDAQ:COIN) and China’s biggest ride hailing company Didi Global Inc (DIDI.N) also made their debut on the US stock exchange. 

Robinhood’s listing comes a time when meme-stock mania has fuelled demand for stocks such as AMC, GameStop, and BlackBerry.

The company, which offers zero-commission trading in stocks and cryptocurrencies, has stated that it will reserve up to 35% of shares for its app users at the pre-trading range of US$38 to US$42 per share.

Also Read: When is Robinhood going public? Here’s all you need to know

Founded in 2013 with the mission to “democratise finance for all”, the app has emerged as the go-to destination for retail investors. It provides free stock options, Exchange Traded Funds (ETFs), gold and cryptocurrency trades, with no account minimums.

The company was started by young entrepreneurs, Vladimir Tenev and Baiju Bhatt, with an objective to provide everyone a chance to participate in the financial system, regardless of their wealth, income or background.

For the financial year ended December 2020, the company reported revenue growth of 245% at US$959 million, compared to US$278 million in the previous fiscal. Its net income was US$7 million, compared to a net loss of US$107 million in the last fiscal.

Also Read: Robinhood IPO: Five things to know about the fintech start-up before it goes public

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