The offering of the trading platform would be based on a $30 billion valuation, compared to $11.7 billion last year
Robinhood has been in the spotlight for weeks because of the GameStop Corp. (NYSE: GME) case when retail traders made hedge funds lose billions of dollars thanks to the short squeeze on the largest video game retailer’s stock. Now the trading platform is ready to go public on Wall Street through a confidential initial public offering (IPO), and it could submit filings to the U.S. Securities and Exchange Commission by the end of March.
On The Way To Going Public: The news was reported by Bloomberg after putting together some rumors. The newswire stated that Robinhood had been aiming at public listing since last year. Now the platform is reportedly working on a conversion of the funding into capital, based on a valuation of $30 billion or a 30% discount compared to the market estimate – in case this is below the indicated threshold.
Funding Received Since 2020: In order to meet the deposit requests related to the boom in trading activity on its circuits - as it happened in the GameStop case - Robinhood received a $3.4 billion financial support, in addition to the $460 million financing obtained in September 2020 - when the app was valued at $11.7 billion.
The Option Of Selling Shares To Its Users: According to Bloomberg, the company is now considering selling some of its shares directly to its users. This is an unusual move, as retail investors don't usually buy at the offering price but rather start investing from day one, taking advantage of a wave which can drive up the share price.
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