Online brokerage firm Robinhood is seeking a valuation of up to $35 billion in its initial public offering, which is one of the most anticipated stock listings this year.
The company said in a filing with the US Securities and Exchange Commission on Monday that Robinhood will issue approximately 55 million Class A common stocks at a price of between US$38 and US$42 in order to seek to raise more than US$2.3 billion in funding. The founder and chief financial officer will issue approximately 2.6 million shares.
The company said that 35% of the company’s IPO shares will be provided to retail traders. Robinhood plans to list on the Nasdaq under the ticker symbol “HOOD”.
Robinhood’s target valuation is At least 40 billion U.S. dollars In the IPO, the “Financial Times” had previously reported.
Goldman Sachs, JPMorgan Chase and Citigroup are the underwriting banks for this transaction.
Bay Area Broker becomes Recent retail investment surge Day trader. Since the beginning of 2021, its registered users have doubled to 31 million.
Robinhood’s total revenue increased by 245% year-on-year in 2020, reaching US$959 million. According to the US Securities and Exchange Commission, the company also reported a net income of 7 million U.S. dollars, and a net loss of 107 million U.S. dollars in 2019. The company estimates that as of the end of June, it had 22.5 million bank accounts-related funds accounts, up from 18 million at the end of the first quarter.
Robinhood’s mission is to “democratize finance for all,” with no commissions and an easy-to-use interface, attracting new groups of young investors into the market. The median age of users is 31 years, younger than rival US brokers such as Charles Schwab or TD Ameritrade. The company said that more than half of its customers are first-time investors.
Robinhood, which provides stocks, derivatives and cryptocurrency trading, has also been scrutinized by regulators. Legislators and regulators As its popularity is getting higher and higher. It is due to things such as “Order flow payment“, Robinhood derives most of its income and turns investing in gaming into a “casino”-like experience.
In late June, the U.S. Financial Industry Regulatory Agency levied Fined $70 million Oppose Robinhood because it has caused so-called “extensive and significant harm” to customers.
IPO valuation is particularly important for investors who purchase convertible notes issued in February, when Robinhood had to Raise emergency funds Fulfilling its obligations to the clearing house at the height of GameStop’s trading frenzy.
These notes will be converted into equity at a discount of at least 30% of the issue price. For most senior debt holders, the valuation cap for conversion is approximately US$30 billion.