By
Steve Muchoki
April 19th, 2024
Although Robinhood submitted the filing to the SEC for review in March, there were still a lot of unclear decisions.
American financial services company Robinhood Markets Inc is planning to reveal details of its initial public offering (IPO) filings. People familiar with the matter confirmed that the stock brokerage would unveil the IPO filings as soon as the coming week. The sources added that although the IPO plans have been established, there is a possibility for change regarding timing and other details.
Potential Investors to Benefit After Robinhood Unveils IPO Filings
Bloomberg revealed Robinhood’s IPO plans in a report on the 18h of May. When Robinhood discloses its IPO filings next week, potential investors will have access to the company’s financials and weigh the risks associated with the stock.
The financial services company submitted a draft registration statement concerning the upcoming IPO in March. Robinhood submitted the registration statement on Form s-1 with the US Securities and Exchange Commission (SEC). At the time, the company had not decided on the number of shares to offer at the IPO. Also, the company has not determined the initial selling price for its stock.
Although Robinhood submitted the filing to the SEC for review, there were still a lot of unclear decisions. At the time of submission, Robinhood was yet to declare the exchange it will list its common shares. Also, the company was yet to announce whether it will go public through a direct listing or the traditional IPO method.
US regulators have criticized Robinhood’s app for encouraging the game-like nature of trading. The new SEC chairman Gary Gensler talked about previously written regulations before technology advanced how trading happens. He commented:
“We need to evaluate our rules, and we may find that we need to freshen up our rule set.”
Robinhood App Used in Major Market Moves
Robinhood is known to be millennial-friendly as most millennials access the stock market through the brokerage app. The financial services provider revealed that it had more than 13 million users as of 2020. With the feature that helps retail traders access the stock market, the Robinhood app has been tagged to be used in major market moves.
In January, some retail traders from Reddit came together to short-squeeze GameStop Corp (NYSE: GME) against hedge funds. Robinhood was forced to stop trading GME and some other stocks. The other companies whose stocks were also put on hold are Nokia (NYSE: NOK) and AMC Entertainment (NYSE: AMC).
Since its inception in 2013, Robinhood has conducted several series of funding. After raising $200 million in a Series G funding round, Robinhood has announced another funding round. On the 29th of January, the company said that it secured $1 billion in a Series H funding round. According to the financial services company, 2 investors and 1 partner investor participated in the round. The investors are Sequoia Capital and Ribbit Capital. The partner investor is Meyer Malka. On the 1st of February, Robinhood announced in a blog post that it had generated another $3.4 billion to fuel record customer growth.