The popular Robinhood stock trading app goes public, the company announced last night.
While the firm submitted documents for an Initial Public Offering (IPO), it has not yet determined the number of shares, the proposed price range or even an IPO date.
The company has filed for an IPO under confidentiality, which allows it to keep certain information secret.
Analysts suggest the company is currently valued at $ 12 billion and that the IPO could push its valuation to over $ 20 billion. Last year, CNBC reported that the company hired Goldman Sachs to lead its IPO efforts.
In January, as the GameStop stock market saga was at its height, Robinhood faced a backlash from traders as it had to stop trading for a while due to market volatility. Shortly after resuming operations, it raised $ 1 billion in capital as a security deposit for the clearing house. In February, Robinhood raised an additional $ 2.4 billion from investors to meet demand for a $ 3 billion trade guarantee.
The company received a lot of criticism during this time and it now faces more than 50 lawsuits for its action during the GameStop. scandal.
Fintech companies have recently received a lot of interest from investors due to the rise of digital commerce during the coronavirus pandemic. Last week, online payments platform Stripe raised $ 600 million from various investors and reached a valuation of $ 95 billion, the highest of any private company in Silicon Valley.
Published March 24, 2021 – 06:19 UTC