- Trading platform Robinhood Markets Inc is targeting a valuation of up to US$35 billion (A$47.67 billion) in its US initial public offering
- Roughly 55 million shares are on offer at a price between US$38 and US$42 (A$51.76 and A$57.21) each
- At the upper end of that range, the company would raise around US$2.3 billion (A$3.13 billion)
- The company plans to list on the NASDAQ under the symbol ‘HOOD’
According to its regulatory filings, trading platform Robinhood Markets Inc is targeting a valuation of up to US$35 billion (A$47.67 billion) in its US initial public offering.
Roughly 55 million shares are on offer at a price between US$38 and US$42 (A$51.76 and A$57.21) each. At the upper end of that range, the company would raise around US$2.3 billion (A$3.13 billion).
Almost 2.63 million of those shares are being offered by Robinhood’s founders, Vlad Tenev and Baiju Bhatt, and its chief financial officer.
As reported in March, the company plans to reserve a portion of the offering — between 20 and 35 per cent of the shares — for its users, depending on demand from customers and other investors.
Upon completion of the offering, Bhatt will retain a 39 per cent stake while Tenev will hold a 26.2 per cent interest.
Robinhood’s platform allows users to make unlimited commission-free trades in stocks, exchange-traded funds, options and cryptocurrencies. Its easy-to-use interface made it the go-to service for young investors during COVID-related lockdowns, which saw its popularity soar to 18 million funded accounts as of March 31.
The trading mania of so-called “meme stocks” earlier this year also helped to drive a four-fold increase in revenue between January and March. The growth, however, came at a cost.
Robinhood faced intense criticism after it suspended trading amid a surge in shares of video game retailer GameStop. At the time, the company was forced to raise US$3.4 billion (A$4.63 billion) in emergency funds to cover a massive jump in capital demands from clearing houses.
The company plans to list on the NASDAQ under the symbol ‘HOOD’.