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The
listing plans come just months after the online brokerage found
itself at the center of a confrontation between a new generation
of retail investors and Wall Street hedge funds in late January.
About 55 million shares are being offered in the IPO to raise
over $2.3 billion. Nearly 2.63 million of those shares are being
offered by the company's founders and chief financial officer,
the filing showed. Proceeds from those will not go to Robinhood.
Shares are expected to be priced between $38 and $42, the
company said.
Robinhood was founded in 2013 by Stanford University roommates
Vlad Tenev and Baiju Bhatt. Its platform allows users to make
unlimited commission-free trades in stocks, exchange-traded
funds, options and cryptocurrencies.
The app's easy-to-use interface made it a go-to for young
investors trading from home during coronavirus-induced
restrictions and its popularity has soared over the past 18
months.
The trading mania in the so-called meme stocks helped fuel a
four-fold jump in its revenue over January to March, Robinhood's
IPO filing earlier this month detailed, but the quick expansion
came at a cost.
The company faced criticism after it was forced to curb trading
in the middle of the surge this year in GameStop and other
previously beaten down stocks.
The Menlo Park, California-based company was valued at around
$30 billion in a funding round earlier this year, according to
people familiar with matter.
Robinhood is pushing ahead with a stock market flotation
following a record 15-month run in the U.S. IPO market, as
investors rushed to buy shares of high-growth tech companies.
(Reporting by Noor Zainab Hussain, Sohini Podder and Niket
Nishant in Bengaluru; Editing by Sriraj Kalluvila)
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