Robinhood, at the heart of retail trading frenzy, files for own IPO
Robinhood Marketplaces Inc, the web brokerage firm in the center of the historic retail trading frenzy that gripped Wall structure Street this season, has confidentially submitted strategies to regulators for a good US initial public offering, the company disclosed on Tuesday.
The proceed to push ahead with a currency markets flotation comes in the center of a boom in US capital markets, fuelled largely by dealmaking through so-called special purpose acquisition companies.
Companies have raised more than $100 billion through original public offerings (IPOs) in the first 90 days of the 12 months and are poised to overtake 2020's record haul of $167bn, data from Refinitiv and Dealogic showed. The total amount raised includes blank-verify IPOs.
Reuters reported found in December that Robinhood had picked Goldman Sachs to lead preparations for a currency markets flotation.
The company has yet to determine the number of shares to be offered and the purchase price range, it said in a weblog post.
Robinhood had considered heading public through a direct listing found in the weeks before the filing, people acquainted with the matter said.
In a primary listing, a company will not promote any shares in advance of its market debut, as may be the case with IPOs.
Menlo Recreation area, California-based Robinhood was founded in 2013 by Stanford University roommates Vlad Tenev and Baiju Bhatt. The business's system allows users to create unlimited commission-free of charge trades in stocks, exchange-traded funds, options and cryptocurrencies.
The platform's easy-to-use interface has managed to get a go-to for young investors trading from your home during coronavirus-induced restrictions and its own popularity soared through the retail trading frenzy.
The business, however, faced criticism after it was forced to curb trading using stocks through the social media-fuelled trading frenzy because of a 10-fold rise in deposit requirements at its clearinghouse.
It was forced to improve a whopping $3.4bn in crisis funds after its budget were strained because of the jump found in retail trading.
The funding rounds were led by Ribbit Capital and included existing investors ICONIQ, Andreessen Horowitz, Sequoia Capital, Index Ventures and New Enterprise Associates. The most recent funding valued Robinhood at around $30bn, relating to persons familiar with matter.
Robinhood happens to be being probed by US regulators over its short-term trading curbs on the so-called "meme shares". The business has reserve $26.6 million for a probable settlement around trading outages in March 2020, along with its trading options policies.
Source: www.thenationalnews.com
