Robinhood submitted paperwork for its highly anticipated initial public offering just one day after receiving a record-breaking penalties from Wall Street's industry regulator. In a filing on Thursday, Robinhood disclosed tremendous increase in users of its trading app, as well as a slew of investigations by prosecutors and regulators, paving the way for its highly anticipated IPO.
Major Things To Know About Popular Mobile Trading App
- According to a filing with the Securities and Exchange Commission, the company intends to list its shares on the Nasdaq stock exchange under the name HOOD.
- Robinhood did not specify a target valuation or a timing for its public debut, as is common for an initial IPO filing. By going public, the company expects to raise $100 million.
- Tenev and Baiju Bhatt started the company in 2013, and it acquired a lot of traction among younger users during the pandemic because of its user-friendly trading software, which made securities trading easier for newbies.
- Robinhood's S-1 documents revealed that popularity has skyrocketed in the last 18 months. In fact, the company became profitable in 2020, with revenue of $959 million and a $7 million net profit last year. In 2019, it, on the other hand, lost $107 million.
- Since its launch, Ribbit Capital, ICONIQ, Andreessen Horowitz, Sequoia Capital, Index Ventures, and New Enterprise Associates have raised over $5.5 billion from investors, including Ribbit Capital, ICONIQ, Andreessen Horowitz, Sequoia Capital, Index Ventures, and New Enterprise Associates.
- Robinhood revealed that it had reached an out-of-court settlement with the Kearns family, who had accused the company of "wrongful death, negligent infliction of emotional distress, and unfair business practises" and sought damages.