Robinhood Seeks $35 Billion Valuation in IPO

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Robinhood announced the expected price range for its IPO on Monday, bringing its popular stock trading app one step closer to trading the markets.

In an updated prospectusRobinhood said it plans to sell its shares for between $38 and $42 each. At the midpoint of this range, it will increase by $2.2 billion and be worth approximately $33 billion; eventually, it would be worth about $35 billion.

The announcement will officially kick off the final chapter in Robinhood’s long road to go public: a roadshow to guide prospective investors on the company’s financial performance.

It will test investor appetite for the online brokerage firm, which is forcing a major shift in stock trading by eliminating commissions and becoming the platform of choice for the next generation of day traders – but has become a target for regulators and legislators who accuse it of being misleading. customers. one home trial after frantic trading of so-called meme stocks, Vlad TenevAs the CEO and co-founder of Robinhood, he faced sharp questions from legislators about the company’s policies and business model.

In an unusual move, Robinhood is dedicating a third of its IPO shares to its clients instead of the standard universe of mutual funds and other large institutional investors.

This fits with the company’s stated goal of “democratizing finance,” but the offer could make trading more volatile than a traditional stock sale, potentially opening itself up to even more criticism.

In the updated prospectus, Robinhood also provided forecasts for continued growth in revenue and how it performed in the second quarter, including customers paying customers from the first quarter of the year. Its net loss also shrank, but the first quarter included a one-time accounting fee related to the billions of dollars it had collected earlier in the year.

It will begin trading on the Nasdaq market by the end of next week.

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