Robinhood seeks $2bn capital rally ahead of summer Nasdaq IPO
Trading platform Robinhood is eyeing a more than $2bn fundraise to accompany its initial public offering which is expected later this summer.
The app, which rose to fame amid the Gamestop meme-stock rally at the beginning of the year, filed paperwork for the listing at the beginning of July.
Robinhood is set to market 55m shares for between $38 to $42 each, a regulatory filing with the U.S. Securities and Exchange Commission said today.
The Nasdaq float could value the company at $35bn, which could swell or sink depending on investor demand.
Robinhood’s app sparked an investor frenzy that made it to the doors of Wall Street when people in lockdown turned to online trading to both pass the time and make money.
The number of monthly consumers has more than doubled in the last year, up from 8.6m to at least 17.7m, it reported in its first-quarter trading result.
However, the app was hit with a $70m fine by US financial regulators at the beginning of the month for ‘misleading’ customers following the suicide of Alex Kearns.
Kearns mistakenly believed he owed $730,000 as a result of trading on the app when he took his own life.