Robinhood (HOOD) Expected IPO Price between $38 and $42 as ammended S-1 filing with SEC lodged

Robinhood files an amended S-1 Filing with the SEC.
Robinhood to trade under the ticker HOOD.
Robinhood is expected to launch on the stock market in July or August.

Ivan Brian FXStreet

Robinhood (HOOD) filed an amended S-1 with the SEC on Monday with new details on its upcoming Initial Public Offering (IPO). Robinhood is an online trading platform with an emphasis on financial markets trading. The company through its app allows trading in major US stocks and options, cryptocurrency through its Robinhood Crypto subsidiary as well as exchange-traded funds (EFT's). The company has revolutionized the online trading space through its ease of use and simple explanation of option-related trading and probably more importantly commission-free trading.

Robinhood has been in existence since 2013 having been set up by Standford graduates Vlad Tenev and Baiju Bhatt. The Robinhood app was launched in 2013 but it was not until it launched on the Apple app store in 2014 that it began to gain traction with retail investors.

Robinhood was relatively well known until the 2021 retail trading frenzy cast it into the stratosphere with volumes and users of the Robinhood app exploding. The company struggled to keep up with the explosion in trading in GameStop (GME) shares. The whole saga eventually led to CEO and founder Vlad Tenev testifying before congress on the issue along with several other senior industry representatives.

Robinhood (HOOD) expected IPO price

The new information on Monday shows that 55 million shares of class A common stock are expected to be listed. Robinhood is to offer 52.4 million shares for sale with an extra 2.6 million shares to be sold by selling stockholders. After the IPO Vlad Tenev the founder and CEO we well as other related entities will hold about 7.9% of shares according to Reuters. Vlad Tenev will hold more voting power at about 26% with fellow founder Baiju Bhatt holding about 39%, this is common with recent tech IPO's.

The anticipated IPO price will be $38 to $42. This could value Robinhood (HOOD) at up to $35 billion.

Goldman Sachs (GS) and JPMorgan (JPM) are the lead underwriters for the listing.

Robinhood recently said for three months ended to March 31 that revenue had grown to $522 million, a growth rate of over 300%. The company said that 2020 total revenue was $959 million an increase of 245% from the previous $278 million for 2019.

Author

Ivan Brian

FXStreet

Ivan Brian started his career with AIB Bank in corporate finance and then worked for seven years at Baxter. He started as a macro analyst before becoming Head of Research and then CFO.

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