July 19 (Reuters) – Robinhood Markets Inc is targeting a valuation of up to $ 35 billion when it goes public in the United States, the company revealed in a filing Monday, paving the way for one of the much-anticipated stock quotes of the year.
The listing plans come just months after online brokerage found itself at the center of a showdown between a new generation of retail investors and Wall Street hedge funds in late January.
Robinhood was aiming for an IPO valuation of up to $ 40 billion, Reuters previously reported. Read more
About 55 million shares are offered in the IPO to raise more than $ 2.3 billion. Nearly 2.63 million of these shares are offered by the founders and the chief financial officer of the company, according to the file. The proceeds from these will not go to Robinhood.
The shares are expected to be listed between $ 38 and $ 42, the company said.
Salesforce Ventures, the investment arm of software provider Saleforce.com Inc (CRM.N), plans to buy up to $ 150 million of Class A common stock at the IPO price, according to the folder.
Robinhood was founded in 2013 by Stanford University roommates Vlad Tenev and Baiju Bhatt. They will hold the majority of the voting rights after the offer, according to the record, with Bhatt owning around 39% of the voting rights of the outstanding shares while Tenev will own around 26.2%.
The company’s platform allows users to conduct unlimited commission-free transactions in stocks, exchange-traded funds, options, and cryptocurrencies. Its easy-to-use interface has made it a must-have for young home-based investors during the coronavirus-induced restrictions and its popularity has skyrocketed in the past 18 months.
The commercial craze for so-called memes stocks helped to quadruple its earnings from January through March, detailed Robinhood’s IPO filing earlier this month, but the rapid expansion came at a cost. Read more
The company has come under fire after being forced to curb trade amid this year’s outbreak on GameStop (GME.N) and other previously battered stocks.
At the time, Robinhood was forced to raise $ 3.4 billion in emergency funds after its finances were strained by the massive increase in retailing and the resulting increase in demands for capital. clearing houses. Read more
That round valued the company at around $ 30 billion, according to people familiar with the matter.
Robinhood’s IPO comes amid a record 15-month period for the U.S. IPO market, as investors rushed to buy shares of high-growth technology companies.
The company plans to list on Nasdaq under the symbol “HOOD”.
Goldman Sachs and JPMorgan are the main underwriters of the offer.
Reporting by Noor Zainab Hussain, Sohini Podder and Niket Nishant in Bengaluru; Editing by Sriraj Kalluvila
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