Robinhood seeks to value up to US $ 35 billion in US mega-IPO
NEW YORK: Robinhood Markets Inc is targeting a valuation of up to US $ 35 billion (RM 147.9 billion) in its initial public offering (IPO) in the United States, the company has revealed in a filing, leading the way to one of the most expected stock quotes this 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 US $ 40 billion (RM 168.98 billion), Reuters previously reported.
About 55 million shares are being offered in the IPO, which is expected to be priced between US $ 38 (RM 160.53) and US $ 42 (RM 177.43), the company said. This would raise more than $ 2.3 billion (RM 9.72 billion) if the price were at the high end of the range.
Nearly 2.63 million of these shares are offered by the founders and the chief financial officer of the company, according to the file. Profits from these will not go to Robinhood.
Salesforce Ventures, the investment arm of software provider Salesforce.com Inc, plans to purchase up to US $ 150 million (RM 633.67) of Class A common stock at the IPO price , according to the record.
As Reuters revealed in March, Robinhood plans to reserve part of its offering for users of the trading app. Between 20% and 35% of the shares will be allocated to users, depending on demand from customers and other investors, depending on the case.
In a separate statement, Robinhood said it would hold a public event on July 24 to outline its IPO plans and answer questions from potential investors. This is akin to the traditional roadshows that companies and their advisers organize with professional investment firms in the run-up to a stock offering.
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 perform 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.
Robinhood has 18 million funded accounts as of March 31, according to his file.
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.
The company has come under fire after being forced to curb trade amid this year’s GameStop surge and other previously battered stocks. – Reuters