Popular American financial services company Robinhood is finalizing moves to list publicly this year, with an evaluation of $35 billion.
Robinhood finally looks set to go public after months of speculation. The popular trading app has come under fire recently for multiple reasons. These issues delayed the launch of the company going public. However, it now appears that the company is ready to proceed with its initial public offering (IPO). Robinhood is targeting a valuation of up to $35 billion.
Robinhood has seen its popularity soar in 2021. Following the recent stock rally led by retail investors, which saw stocks such as GameStop (GME) rally to ridiculous prices. Robinhood was also one of the top brokers to offer Dogecoin (DOGE) trading on its app during the cryptocurrencies surge to new all-time highs.
Robinhood saw a massive surge in growth due to crypto trading interest. The company had previously reported a 600% increase in traders on the platform in the fourth quarter of 2020. One month after the company had filed for its IPO with the U.S. Securities and Exchange Commission (SEC).
Robinhood overcomes issues
The initial filing saw multiple delays due to various reasons. New York regulators demanded Robinhood pay a $10 million fine for alleged cybersecurity and anti-money laundering (AML) rule violations.
Financial Industry Regulatory Authority (FINRA) also ordered Robinhood to pay a record financial penalty for “significant harm” to customers. The agency asked Robinhood to pay roughly $70 million to customers for false or misleading information related to system outages that occurred during March 2020. Regardless of the setbacks, Robinhood reportedly made 34% of its 2021 crypto revenue from DOGE alone, accounting for 6% of total revenue. Crypto as a whole, accounted for 17% of the company’s revenue in quarter one.
The IPO Details
Robinhood will offer approximately 55 million shares. The company plans to raise over $2.3 billion. The share price is expected to be priced between $38 and $42.
The company plans to list on the Nasdaq under the symbol “HOOD.” Goldman Sachs and J.P. Morgan are the lead underwriters for the offering.
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