Robinhood priced its IPO at $38 per share


SAN FRANCISCO – Robinhood is best known for its association with “meme stocks”. Now stock trading app can be one.

Robinhood priced its IPO Wednesday at $38 per share, valuing the company at $31.7 billion, according to two people familiar with the transaction. rose 2.1 dollars laying the groundwork for the company to start trading on Thursday under the symbol HOOD.

The price was on the lowest end of Robinhood. the originally announced range is $38 to $42shows moderate interest in the stock.

Robinhood’s IPO has been closely watched even in the middle of the craziest year for listings since the dot-com bubble of 2000. The company’s role in facilitating stock trades, its mission to wreak havoc on Wall Street, and its recent string of controversies have made its proposal a symbol. The disruption in Silicon Valley and the challenges that come with it. Also, this year has been closely identified with driving the roller coaster trade of “meme stocks” like GameStop and AMC Entertainment.

Robinhood, who said he wanted to democratize finance, also directly sold a large part of its offer This will test whether their customers will retain stock or quickly abandon it. Robinhood pisses off customers It stopped some operations in Januarycaused some to conspirate to flip or bet on the company’s shares when they listed the company’s stock.

That’s why Robinhood’s bankers said they expect the stock’s early trading to be more volatile than other initial public offerings.

The company has also faced several lawsuits and regulatory investigations related to its business. On Tuesday, he said in a filing that the Financial Industry Regulatory Authority was investigating its founders’ compliance with registration requirements.

This comes after Robinhood paid FINRA a $70 million fine in July for misleading customers and harming them in outages. Last year the company also paid $65 million to the Securities and Exchange Commission for misleading customers.

Over the weekend, Robinhood founders Vlad Tenev and Baiju Bhatt presented a public version of his presentation to investors, raising questions about the regulations and business model. While Mr. Tenev was amazed at Robinhood’s rapid growth, he also noted that it “has caused some real challenges”.

Wall Street Journal earlier Robinhood’s share price has been announced.


Source link

Leave a Reply

Your email address will not be published. Required fields are marked *