- Robinhood Markets Inc. seeks a valuation of US$35 billion in its initial public offering.
- The trading app is expected to raise about US$2.3 billion in its highly anticipated public listing.
- The company is reportedly expected to list on the NASDAQ Stock Market on July 29.
The much-awaited initial public offering (IPO) of online crypto trading platform Robinhood is finally out in the open, as the company lodged its prospectus with the US Securities and Exchange Commission (SEC). The millennial-favoured stock trading app is seeking a valuation of up to US$35 billion in its IPO, setting the stage for one of the biggest stock listings in the United States this year.
The brokerage company, which offers zero-commission trading in stocks and cryptocurrencies, filed IPO document with official name Robinhood Markets, Inc. The firm did not disclose the size of the offering, but it is reported to raise about US$2.3 billion in its highly anticipated public debut. The company is expected to issue around 55 million shares at an offer price of US$38 to UD$42 apiece, out of which around 2.63 million would be offered by the company’s founders and the CFO, according to a Bloomberg report.
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As per the report, the company is expected to commence trading on the NASDAQ Stock Market on July 29. However, the company is yet to issue an official statement about the offer price and the listing date.
Following the listing, Robinhood will join the league of cryptocurrency trading platform Coinbase Global Inc (NASDAQ:COIN) and China’s biggest ride hailing company Didi Global Inc (DIDI.N), which debuted on the US stock exchange this year.
Here’s everything you need to know about Robinhood IPO:
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- Founded in 2013 with the mission to “democratise finance for all”, the online trading app provides everyone a chance to participate in the financial system, regardless of their wealth, income or background.
- The company will make exchange debut eight years after young entrepreneurs, Vladimir Tenev and Baiju Bhatt, started the company with an objective to provide every small investor with market access, which is largely dominated by institutions or wealthier investors.
- The brokerage firm provides free stock options, Exchange Traded Funds (ETFs), gold and cryptocurrency trades, with no account minimums.
- For the year ended 31 December 2020, the company’s revenue surged 245% to US$959 million, up from US$278 million in the previous fiscal. The net income stood at US$7 million, compared to a net loss of US$107 million.
- The company’s revenue surged to US$522 million in the first quarter ended 31 March 2021, registering a growth of 309% as compared to US$128 million in the corresponding quarter last year. For the March quarter, the company recorded a net loss of US$1.4 billion, which included a US$1.5-billion fair value adjustment to its convertible notes and warrant liability, compared to a net loss of $53 million.
- As of 31 March 2021, the online brokerage firm had 18 million Net Cumulative Funded Accounts on its platform. The company claimed that around 50% of all new retail funded accounts opened in the United States from 2016 to 2021 were new accounts created on Robinhood, citing account data from publicly reporting peer brokerages.