Robinhood Markets Inc finally reveals its target for the upcoming initial public offering. The company is aiming to reach $35 billion in valuation through its IPO. This further marks the IPO for Robinhood to be one of the highly anticipated stock market listings of the year.
Rumours of Robinhood’s IPO has been circulating since late February. At that time, Robinhood claimed to have been discussing the IPO since last year.
Reuters‘ previous report revealed that Robinhood is aiming for an IPO valuation of up to $40 billion.
Robinhood is offering around 55 million shares in its IPO. The company further revealed that the price for the shares will range between $38 ad $42. With this amount of shares offered, Robinhood might raise over $2.3 billion, Reuters notes.
Accordingly, the filing showed that the company’s founders and chief financial officer are offering around 2.63 million of the shares. Robinhood will not receive proceeds from the shares.
Additionally, the filing showed that Salesforce Ventures is looking to purchase up to $150 million worth of Class A common stock at the IPO price. The firm is the investment arm of software provider Salesforce.com Inc.
Robinhood will be filing its company on the Nasdaq under the symbol “HOOD” with Goldman Sachs and JP Morgan as the lead underwriters for the offering.
Robinhood was first founded by Vlad Tenev and Baiju Bhatt in 2013. The filing further showed that there will be a voting power following the offering. Currently, Bhatt owns 39% of the voting of outstanding stock while Tenev will hold around 26.2%.
Robinhood was one of the key figures behind the “meme stocks” rally. The aftermath of the rally, though, didn’t end up well for Robinhood. A lot of their users criticized Robinhood for forcing curb trading in the middle of the surge this year in GameStop and several other stocks.
The situation forced Robinhood to raise $3.4 billion in emergency funds. massive jump in retail trading and a resulting jump in capital demands from clearinghouses strained Robinhood’s finances by a lot.
People who are familiar with the matter said that the company’s value at that round reached around $30 billion.
The stock market flotation for Robinhood comes within a record 15-month run for the US IPO market. Investors are also rushing to buy shares of high-growth technology companies during the period.