By Maggie Fitzgerald, CNBC •
Updated on July 28, 2021 at 8:50 pm
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Robinhood raised close to $2 billion, selling shares in its IPO at $38 a piece.
The company has about 22.5 million users of its stock trading app, based on second-quarter data.
Revenue in the first quarter jumped 309% to $522 million from $128 million in the same period a year earlier.
Robinhood, whose stock trading app has surged in popularity among retail investors, sold shares in its IPO at $38 a piece, valuing the company at about $32 billion.
Ahead of its Nasdaq debut on Thursday, Robinhood priced shares at the low end of the $38 and $42 range. The company, which will trade under ticker symbol HOOD, sold 52.4 million shares, raising close to $2 billion. Co-founders Vlad Tenev and Baiju Bhatt each sold about $50 million worth of stock.
Robinhood prices IPO at $38 per share, valuing the online brokerage app at $32 billion
Robinhood priced its IPO at $US38 ($AU52) per share on Wednesday, valuing the company at about $US32 ($AU43) billion.
The online brokerage app revealed surging growth in its S-1 filing amid the COVID-19 pandemic and government stimulus checks.
Robinhood is set to trade on the Nasdaq under the symbol “HOOD” on Thursday.
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Robinhood priced its IPO at $US38 ($AU52) on Wednesday, valuing the online brokerage app popular with retail investors at roughly $US32 ($AU43) billion. The Wall Street Journal first reported the pricing.
Robinhood’s IPO pricing came it at the bottom end of the price range it had initially been targeting during its roadshow of $US38 ($AU52) to $US42 ($AU57) per share. Robinhood last raised $US3.4 ($AU5) billion earlier this year, with shares trading on private secondary markets at a valuation around $US40 ($AU54) billion.
July 29, 2021
published at 1:30 AMReuters
NEW YORK - Robinhood Markets, the owner of the trading app which emerged as the go-to destination for retail investors speculating on this year s meme stock trading frenzy, raised US$2.1 billion (S$2.85 billion) in its initial public offering (IPO) on Wednesday (July 28).
The company is seeking to capitalise on individual investors’ fascination with cryptocurrencies and stocks such as GameStop, which have seen wild swings after becoming the subject of trading speculation on social media sites such as Reddit. Its monthly active users surged from 11.7 million at the end of December to 21.3 million as of the end of June.
The trading app company and some of its investors sold 55 million shares Wednesday for $38 each, according to a statement. Shares of the company at the center of this year’s meme stock frenzy had been offered for $38 to $42 each.
The company has a market value at the IPO price of just under $32 billion based on the outstanding shares listed in its filings. Accounting for employee stock options and similar holdings, Robinhood’s fully diluted value would be closer to $33 billion. That compares of a diluted valuation of more than $36 billion that it would have had at the top end of its price range.The price indicates investors weren’t clamoring to buy Robinhood’s stock the way they had with some of the year’s hottest offerings. Still, a lower price in the IPO could allow more room for the “first-day pop” craved by investors when the stock begins trading Thursday.
Robinhood Markets Inc, the owner of the trading app which emerged as the go-to destination for retail investors speculating on this year s meme stock trading frenzy, raised $2.1 billion in its initial public offering on Wednesday. The company was seeking to capitalize on individual investors fascination with cryptocurrencies and stocks such as GameStop Corp, which have seen wild swings after becoming the subject of trading speculation on social media sites such as Reddit. Robinhood s monthly active users surged from 11.7 million at the end of December to 21.3 million as of the end of June. The IPO valued Robinhood at $31.8 billion, making it greater as a function of its revenue than many of its traditional rivals such as Charles Schwab Corp, but the offering priced at the bottom of the company s indicated range.