Robinhood is targeting a market valuation of up to $ 35 billion for its upcoming IPO, according to an amended SEC filing released Monday.
The stock trading app will attempt to sell its stock in a range of $ 38 to $ 42 per share, according to the updated prospectus. Robinhood plans to sell 55 million shares in that range to raise up to $ 2.3 billion.
Robinhood – which plans to trade under the symbol “HOOD” on the Nasdaq – has also updated several of its financial and user metrics in the amended filing. The company estimates it has 22.5 million funded accounts (tied to a bank account), up from 18 million in the first quarter of 2021.
The free trade pioneer based in Menlo Park, California, estimates sales in the second quarter of 2021 at between $ 546 million and $ 574 million. That would be a 129% increase in revenue from $ 244 million in the second quarter of 2020. The company had revenue of $ 522 million in the first quarter of 2021.
However, Robinhood estimates a net income loss of between $ 537 million and $ 487 million in the second quarter of 2021, compared to a profitable second quarter of 2020.
Robinhood’s last private market valuation was $ 11.7 billion and was surveyed last September.
Goldman Sachs, Citigroup and JPMorgan are among the leading underwriters of the transaction, along with other banks.
Robinhood’s longstanding mission is to “democratize” investment and is seen as the primary gateway for young investors to access the markets. The app saw record numbers of new, younger traders going public during the pandemic and GameStop trading mania.
Robinhood’s competitors include Fidelity, Charles Schwab, Interactive Brokers, and startups like Webull and Sofi. Charles Schwab has a market capitalization of $ 130 billion and Interactive Brokers has a market valuation of $ 26 billion.
Robinhood – which offers stock, cryptocurrency, and options trading, as well as cash management accounts – is slated to make its public debut late next week.
Robinhood is a five-time CNBC Disruptor 50 company that topped this year’s list.
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