- Robinhood will sell 55 million shares at a price range of US$38 to US$42.
- Robinhood said it expects second-quarter revenue to surge 129 percent.
- Robinhood will reserve up to 35 percent of the shares in the offering to its customers.
Robinhood Markets, Inc. targets to raise up to US$2.2 billion in the proposed initial public offering, or IPO, according to its latest filing with the U.S. Securities and Exchange Commission.
The stock trading application will offer 55 million shares of its class A common stock at a price range of US$38 to US$42 per share. Underwriters can opt to purchase up to 5.5 million additional shares.
Robinhood has applied to trade its stock under the ticker symbol “HOOD” on Nasdaq Global Select Market.
The offering includes 2.6 million shares that will be sold by the company’s founders and CFO. The California-based company reportedly targets a valuation of up to US$35 billion in the offering.
Goldman Sachs & Co. LLC, Citigroup and JPMorgan are the lead underwriters for the offering.
Robinhood expects 129%YOY growth in Q2 revenue
Robinhood projects its second-quarter revenue to grow around 129 percent year over year to the range of US$546 million and US$574 million as it expects a 130 percent growth in net cumulative funded accounts and record-high trading activity.
Net loss is forecasted between US$487 million and US$537 million in the three months ended June 30. This compares with US$58 million profit in the year-ago quarter. The company attributed the loss primarily to the change in fair value of convertible notes and warrant liability of US$528 million.
Robinhood’s revenue jumped 309 percent to US$522 million in the first quarter from US$128 million in the year-ago quarter. However, Robinhood had reported a US$1.4 billion loss in its first quarter ended March 31, compared with a US$53 million loss in the year-ago period.
In 2020, Robinhood booked a profit of US$7 million, compared with a US$107 million net loss in the previous year. Revenue was US$ 959 million, up 245 per cent year over year.
Meanwhile, the company anticipates third-quarter revenue to be lower than the second-quarter revenue as the trading activity is expected to decrease in the quarter.
How to buy Robinhood shares?
Robinhood said it will set aside between 20 percent and 35 percent shares of the class A common stock offering to its customers. They can buy the shares at the offering price through the IPO Access feature on Robinhood’s platform.
Please note: The above constitutes a preliminary view, and any interest in stocks/cryptocurrencies should be evaluated further from an investment point of view.