Skip to main content
Complete Olympic Games coverage at your fingertips
Your inside track on the Olympic Games
Enjoy unlimited digital access
$1.99
per week for 24 weeks
Complete Olympic Games coverage at your fingertips
Your inside track onthe Olympics Games
$1.99
per week
for 24 weeks
// //

Robinhood Markets Inc is targeting a valuation of up to US$35-billion in its initial public offering in the United States, the company revealed in a Monday filing, setting the stage for one of the most highly anticipated stock market listings this year.

The listing plans come just months after the online brokerage found itself at the centre of a confrontation 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, Reuters had previously reported.

Story continues below advertisement

About 55 million shares are being offered in the IPO, with shares expected to be priced between US$38 and US$42, the company said. This would raise over US$2.3-billion if priced at the top of the range.

Nearly 2.63 million of those shares are being offered by the company’s founders and chief financial officer, the filing showed. Proceeds from those will not go to Robinhood.

Salesforce Ventures, the investment arm of software provider Salesforce.com Inc, is looking to purchase up to US$150-million worth of Class A common stock at the IPO price, the filing showed.

As revealed by Reuters in March, Robinhood plans to reserve some of its offering for users of the trading app. Between 20 per cent and 35 per cent of shares will be allocated to users, dependent on demand from customers and other investors, the filing said.

In a separate statement, Robinhood said it would host a public event on July 24 to present its IPO plans and answer questions from potential investors. This is akin to traditional roadshows which companies and their advisers host with professional investment firms in the run-up to a share offering.

Robinhood was founded in 2013 by Stanford University roommates Vlad Tenev and Baiju Bhatt. They will hold a majority of the voting power after the offering, the filing showed, with Mr. Bhatt having around 39 per cent of the voting power of outstanding stock while Mr. Tenev will hold about 26.2 per cent.

The company’s platform allows users to make unlimited commission-free trades in stocks, exchange-traded funds, options and cryptocurrencies. Its easy-to-use interface made it a go-to for young investors trading from home during coronavirus-induced restrictions and its popularity has soared over the past 18 months.

Story continues below advertisement

Robinhood has 18 million funded accounts as of Mar. 31, according to its filing.

The trading mania in the so-called meme stocks helped fuel a four-fold jump in its revenue over January to March, Robinhood’s IPO filing earlier this month detailed, but the quick expansion came at a cost.

The company faced criticism after it was forced to curb trading in the middle of the surge this year in GameStop and other previously beaten-down stocks.

At the time, Robinhood was forced to raise US$3.4-billion in emergency funds after its finances were strained by the massive jump in retail trading and a resulting jump in capital demands from clearing houses.

That round valued the company at around US$30-billion, according to people familiar with matter.

Robinhood’s stock market flotation comes amid a record 15-month run for the U.S. IPO market, as investors rushed to buy shares of high-growth tech companies.

Story continues below advertisement

The company plans to list on the Nasdaq under the symbol “HOOD.”

Goldman Sachs and J.P. Morgan are the lead underwriters for the offering.

Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.

Your Globe

Build your personal news feed

  1. Follow topics and authors relevant to your reading interests.
  2. Check your Following feed daily, and never miss an article. Access your Following feed from your account menu at the top right corner of every page.

Follow topics related to this article:

View more suggestions in Following Read more about following topics and authors
Report an error
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

If you do not see your comment posted immediately, it is being reviewed by the moderation team and may appear shortly, generally within an hour.

We aim to have all comments reviewed in a timely manner.

Comments that violate our community guidelines will not be posted.

UPDATED: Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies