Robinhood Trading App Files for Confidential IPO with SEC

Share Article
In Brief
  • Robinhood confirms it has filed an application with the SEC for an IPO.

  • The number of shares and price has not been decided.

  • The app continues to do well despite the GameStop incident.

  • promo

    Gravity Dex Protocol: Bringing DeFi to Cosmos

The Trust Project is an international consortium of news organizations building standards of transparency.

Robinhood has confidentially filed for an IPO, as revealed by a draft filing submitted to the US Securities and Exchange Commission (SEC).

Sponsored



Sponsored

Robinhood, the now much-maligned trading app, has confidentially filed a draft registration statement for an IPO.

The story was first reported by Bloomberg and later confirmed by Robinhood in a blog post.

Sponsored



Sponsored

A Robinhood IPO has been in the works for some time. Reuters reported that Goldman Sachs would lead the IPO.

The IPO will take place once the filing receives the SEC’s approval. Though, the firm notes that the number of shares on offer and the price range has not been decided.

Robinhood received a near $12 billion valuation following a funding round in September 2020. The company’s backers include Andreessen Horowitz and Sequoia Capital.

Recent events have wrought turmoil for the company. Most notably, the company’s role in the GameStop stock incident resulted in a significant dip in its reputation.

Many criticized Robinhood for being hypocritical. This is because its motto of democratizing investment was in conflict with its decision to suspend the trading of the GameStop stock. Users of the app accused Robinhood of siding with institutions, and going against the idea of democratizing finance.

Still, Robinhood is an extremely popular app despite all the incidents. The app saw over 600,000 downloads in a day, according to research from SimilarWeb and JMP Securities. Its popularity holds because, in terms of user experience, few apps come close.

Robinhood IPO Could Be a Boost for Crypto

Robinhood, which offers cryptocurrency investments as well, has been popular among younger investors thanks to its sleek interface. The company is one of many related to the cryptocurrency industry that is set to go public.

Coinbase is the other major headliner for crypto-related IPOs. The San Francisco-based exchange will undergo a direct listing instead of an IPO, it announced in January 2021. Coinbase’s most recent valuation has been set at $90 billion.

As many as eight other crypto-associated companies have mulled going public. These include mining hardware manufacturer MicroBT and social trading platform eToro.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
Sponsored
Share Article

Rahul is an India-based Digital Marketer who became attracted to Bitcoin and blockchain technology in 2014. Ever since, he's been an active member of the community. Other than that, he is a die-hard gamer. This gadget freak is well renowned in his circle for binge-watching Game of Thrones.

Follow Author

Market signals, studies and analysis! Join our Telegram Today!

Go

Market signals, studies and analysis! Join our Telegram Today!

Go

Market signals, studies and analysis! Join our Telegram Today!

Go