Robinhood Files for IPO
Platform trading app Robinhood has confidentially submitted a registration with the Securities and Exchange Commission to file for an initial public offering of its common stock, according to a company blog post.
The number of shares to be offered and the price range for the proposed offering have not yet been determined. The IPO is expected to take place after the SEC completes its review process, subject to market and other conditions, the blog post says.
The SEC filing “puts the company on track to start trading publicly by the end of the second quarter,” according to The Wall Street Journal.
Robinhood was valued at $11.7 billion during its most recent round of private fundraising in September and has now hired Goldman Sachs to advise it for the IPO, according to Barron’s. However, the latest bids in the secondary market for Robinhood shares equate to a valuation of around $40 billion, according to data from Rainmaker Securities, Quartz reports.
Robinhood has been in the headlines since the beginning of the year, following the market frenzy that ensued when the app halted trading of certain stocks popular on the Reddit subthread r/WallStreetBets, including AMC and GameStop. The app is now not only facing a slew of lawsuits, but increased scrutiny by key financial regulators. Robinhood’s CEO Vladimir Tenev testified before Congress last month. The company was founded in 2013 by Tenev and Baiju Bhatt.
Also last month, Robinhood, which says its mission is to “democratize finance for all,” announced in a tweet — on the eve of testifying before Congress — that it fully intends “to provide the ability to deposit and withdraw cryptocurrencies.”
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