Robinhood, the online brokerage that found itself embroiled in this year's meme stock phenomenon, will go public seeking a market valuation of up to $35 billion.
The company said in a regulatory filing on Monday that it hopes to price 55 million shares in its initial public offering in a range of $38 to $42 per share. It could raise approximately $2.3 billion if shares are sold at the high end of the range.
Robinhood is offering approximately 52.4 million shares. The company's founders Baiju Bhatt and Vladimir Tenev, and Chief Financial Officer Jason Warnick, are offering about 2.6 million shares. The company won't receive any proceeds from shares sold by its officers and founders.
The underwriters have an option to buy 5.5 million shares to cover any overallotments.
Robinhood’s IPO will give investors a chance to own part of a fast-growing company that has rocked the traditionally staid brokerage business. Since its launch in 2014, Robinhood’s popularity has forced rivals to get rid of commissions and to offer apps that make trading easy and maybe even fun.
The company said in its filing that it had 17.7 million monthly active users as of March and more than half of its customers are first-time investors.
Many of those first-time investors have started trading on Robinhood due to the popularity of meme stocks like GameStop. The trading frenzy that followed forced Robinhood to limit some trades because of the massive volume and it faced some government scrutiny.
The California company will list on the Nasdaq under the “HOOD" ticker symbol.
Updated on July 19, 2021, at 1:07 p.m. ET with the latest details.
Members of the Screen Actors Guild - American Federation of Television and Radio Artists union officially went on strike Friday after negotiations broke down with the Alliance of Motion Picture and Television Producers. Cheddar News explains.
With so much information floating around about student loans, and an uncertain federal plan to forgive a significant amount of debt, Cheddar News brought in an expert to help you sort through what's going on.
The latest season of the Real Housewives of New York City premiered this week, and Cheddar's own Michelle Castillo got a chance to catch up with the ladies and get some of their tips on how to stretch your dollar in the Big Apple.
Now if you live in a major city and feel like no matter how much money you make it's never enough, you're not alone. Jacqueline Schadeck of New Perspectives Financial is here to show us how you can live within your means and still live comfortably.
China's fast fashion retailer Shein is facing a lawsuit that claims the clothing maker's copyright infringement is so aggressive, it amounts to racketeering.
ChatGPT-maker OpenAI and The Associated Press said Thursday that they've made a deal for the artificial intelligence company to license AP's archive of news stories.
The ongoing liquidation of parent company Bed Bath & Beyond has now officially affected buybuy BABY stores. A judge has approved the sale of the chain's intellectual property for $15.5 million.
