Next week, Robinhood, the online stock broker that became entangled in this year’s meme stock craze, will go public with a market cap of up to $35 billion.
About 52.4 million shares are being offered by Robinhood. About 2.6 million shares are being offered by the company’s founders Baiju Bhatt and Vladimir Tenev, as well as Chief Financial Officer Jason Warnick. The firm will not profit from the sale of shares by its officials and founders.
To cover any overallotments, the underwriters have the option to purchase 5.5 million shares.
The IPO of Robinhood will provide investors the opportunity to acquire a large portion of a fast-growing firm that has shaken up the usually staid brokerage industry. Customers will be able to buy up to $770 million worth of the company’s stock through its platform. According to the document, the projection is predicated on a $40 per share selling price.
Since its inception in 2014, Robinhood’s prominence has compelled competitors to eliminate fees and provide applications that make trading simple, if not enjoyable.
Because of the popularity of meme stocks like GameStop, many of those first-time investors have started investing in Robinhood. Because of the enormous volume, the trading frenzy that ensued caused Robinhood to restrict some deals, and also garnered federal attention.
Revenue will be lower in the third quarter, according to the firm, due to reduced trading activity.
On July 29, the firm is anticipated to list on the stock exchange for the first time. It will be listed on the Nasdaq under the ticker symbol “HOOD.”