Robinhood Markets Incorporation, a trading app company, is planning to raise to more than $2 billion in its initial public offering, Bloomberg reported. Robinhood is expected to make its initial public offering later this summer in a listing that is expected to attract buyers.
According to a filing made on Monday, the trading app company said that it will market 55 million shares for $38 to $42 each. Reportedly, Robinhood is at the center of this year%u2019s meme stock frenzy.
Based on the outstanding shares listed in its filing, Robinhood would have a market value of about $35 billion. The company, by setting a price range, has launched its IPO roadshow and will start meeting with investors this week. However, its valuation could still witness change owing to the demand from investors.
As it plans to raise more than $2.2 billion, the IPO is en route to becoming the fifth biggest on a US exchange this year. It has already set an all-time record with 648 companies raising a total of around $218 billions, Bloomberg reported.
Robinhood%u2019s monthly active users have more than doubled in the past year, with 17.7 million as of the first quarter, up from 8.6 million in the same period last year.
The California-based company said that it will reserve 20% to 35% of its Class A shares for its customers.
After it gained popularity, the app was scrutinised by politicians and regulators. In June, Robinhood was fined a nearly $70 million by the Financial Industry Regulatory Authority. This was a record fine imposed by the watchdog. The watchdog alleged that the trading app misled its customers about margin trading and lapsed in its oversight of technology and approvals for option traders.
Robinhood had announced in March that it had filed confidentially to go public. The company said it generated net income of $7.45 million on net revenue of $959 million in 2020, compared with a loss of $107 million on $278 million the previous year.
The app’s offering is being led by Goldman Sachs group and JP Morgan Chase and Co.
