The smartphone broker Robinhood has turned numerous young people into shareholders in the USA. Now the group is apparently planning an IPO in March. This is reported by “Bloomberg” and refers to unnamed people from the immediate vicinity.
Accordingly, the company is said to have held talks with underwriters in the past week. These are financial institutions or brokers who commit themselves in the event of an IPO to take over a certain part of the issue themselves if not all shares are subscribed.
Robinhood: Valued at $ 11.7 billion on 2020 funding round
A decision has not yet been reached in the talks, and the schedule could still change. Robinhood did not want to comment on “Bloomberg”.
In a financing round last year, the smartphone broker was valued at $ 11.7 billion. The company should consider selling part of its shares in a possible IPO directly to its own users, writes “Bloomberg” on.
Robinhood won numerous customers in the pandemic
This would be an unusual move because retail investors generally cannot buy at the asking price. You usually have to buy on the day you go public, but in recent IPOs, the prices of companies that have gone public have regularly risen rapidly.
During the pandemic, Robinhood experienced a strong influx of customers because the younger generation in particular was concerned with their money and the stock market during the shutdown. In the past few weeks, Robinhood hit the headlines because users on the platform had contributed to the turbulence in the price of the Gamestop share.
As a result, Robinhood had restricted the trading of sought-after values - for example Gamestop. Most recently, Robinhood boss Vladimir Tenev, among others, had to testify before the US Congress.