On Thursday, Robinhood Markets, the trading app that has exploded in popularity during the pandemic, filed for an initial public offering on Nasdaq under the ticker name “HOOD.” The underwriting syndicate consists of 17 institutions, with Goldman Sachs GS, -0.86 percent and JPMorgan JPM, +0.83 percent leading the way.
The company has 17.7 million monthly active users and $81 billion in assets under care, according to the registration paperwork. In the first quarter, it had a net loss of $1.4 billion, compared to a loss of $52.6 million the year before. Revenue increased from $127.6 million to $522.2 million. According to the IPO filings, the proceeds will be utilized to repay debt and for general corporate reasons. The corporation intends to issue three different stock classes, each with different voting rights. Baiju Bhatt and Vladimir Tenev, the company’s founders, are anticipated to keep control. Retail investors will be able to purchase 20% to 35% of its Class A stock. In its prospectus, the company states, “Our objective is to democratize money for all.”/n
