Robinhood IPO is one step closer to its listing plans. The date of Robinhood IPO to get listed on Nasdaq stock exchange under the ticker symbol of HOOD, is still not confirmed by the company. However, what is known from the company filings is that the company will offer nearly 55 million shares and the anticipated IPO price of Robinhood has been set at $38 to $42 each.
Earlier, Robinhood Markets has filed a registration statement on Form S-1 with the Securities and Exchange Commission relating to the proposed initial public offering (IPO) of its Class A common stock. On July 19, 2021, the company filed the S-1/A with the SEC.
As per the Filings, this is an initial public offering of Class A common stock by Robinhood Markets, Inc. in which the company is offering 52,375,000 shares of Class A common stock to be sold. The selling stockholders also are the founders and Chief Financial Officer, who are offering an additional 2,625,000 shares of our Class A common stock.
The filings further states that “We are an ’emerging growth company,’ as that term is used in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”) and, under applicable Securities and Exchange Commission (“SEC”) rules, we have elected to take advantage of certain reduced public company reporting requirements for this prospectus and future filings.”
According to Bloomberg, Robinhood Markets Inc. is seeking a valuation of $35 billion in its initial public offering as the free trading app advances toward a debut likely to draw in buyers from its own novice investor base. Robinhood aims to raise more than $2 billion in its public debut.
Robinhood is a brokerage firm providing access to individual investors to invest in stocks and ETFs with no account minimums and also buy and sell cryptocurrencies. Coinbase Global Inc., a cryptocurrency trading platform that debuted this year is already worth almost $50 billion while the heavyweight Charles Schwab Corp., which bought competitor TD Ameritrade last year has a market value of about $128 billion.
With Robinhood, people can invest in stocks and ETFs with no account minimums, buy and sell crypto, and learn about investing through easy-to-understand educational content. Robinhood’S cryptocurrency trading platform offers commission-free buying and selling of cryptocurrency.
For the year ended December 31, 2020, as compared to the year ended December 31, 2019, Robinhood recorded total revenue growth of 245% to $959 million, up from $278 million. The company during the period recorded net income of $7 million, compared to a net loss of $107 million.
Recently, the online brokerage firm Robinhood had allowed users of its trading app to apply for IPOs. The access to IPOs will allow users to buy shares of companies at their offering price, with no account minimums required. The IPO Access on Robinhood could be only available for certain users who are selected on a random basis. For those looking to invest in Robinhood IPO once it gets listed or in any other US stock may open an international trading account and start diversifying portfolio across foreign stocks.