Robinhood prices IPO at $38 per share, valuing the online brokerage app at $32 billion
Robinhoodpriced its IPOat $38 per share on Wednesday, valuing the company at about $32 billion.
- The online brokerage app revealed surging growth in its S-1 filing amid the COVID-19 pandemic and government stimulus checks.
- Robinhood is set to trade on the Nasdaq under the symbol "HOOD" on Thursday.
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Robinhood priced its IPO at $38 on Wednesday, valuing the online brokerage app popular with retail investors at roughly $32 billion. The Wall Street Journal first reported the pricing.
Robinhood's IPO pricing came it at the bottom end of the price range it had initially been targeting during its roadshow of $38 to $42 per share. Robinhood last raised $3.4 billion earlier this year, with shares trading on private secondary
The company has seen explosive growth amid the COVID-19 pandemic and government stimulus checks, with millions of Americans becoming first time investors in the
While the brokerage firm is not yet profitable, the company saw revenue grow 245% to nearly $1 billion in 2020. That revenue growth accelerated in the first quarter of 2021, surging 309% to $522 million, according to its S-1 filed with the SEC last month.
Unique to Robinhood's IPO is the company's decision to allocate up to 35% of its IPO shares to users of its app. Retail investors are often restricted from investing in IPOs at the pricing afforded to institutional investors.
While Robinhood's IPO represents a big milestone for the company, there is still a long way to go before co-founders Vlad Tenev and Baiju Bhatt can cash in on their hefty compensation awards. Both founders will be awarded $1.4 billion if Robinhood's stock price reaches $101.50 by 2025.
Robinhood is set to trade on the Nasdaq under the symbol "HOOD" beginning on Thursday.
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