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Robinhood, which has lately come underneath intense scrutiny as a result of its dealing with of
buying and selling, is on monitor to launch its long-awaited IPO within the second quarter. The buying and selling platform plans to file a confidential file with the Securities and Change Fee as early as this month.
Robinhood has held talks with its underwriters to maneuver ahead with the IPO, Bloomberg reviews.
It’s not recognized how a lot Robinhood will search to lift with the supply, or whether or not it’s going to use a standard IPO or a direct itemizing. The buying and selling platform was valued at $ 11.7 billion when he raised $ 660 million final yr.
Robinhood declined to remark.
Based in 2013, Robinhood gives commission-free buying and selling. The corporate sends consumer orders to market makers equivalent to Citadel Securities, Virtu Americas and G1X Execution companies. It had 1,281 staff in 2020.
Information of the IPO comes simply weeks since Vlad Tenev, CEO of Robinhood Markets, was laconically requested in regards to the GameStop saga throughout a Home Monetary Companies Committee listening to final month. In January, Robinhood restricted the acquisition of sure shares together with GameStop (image: GME),
(BB), AMC Leisure Holdings (AMC) and
Mattress bathtub and past
(BBBY). The corporate mentioned it was compelled to curb buying and selling as a result of elevated monetary calls for from its clearinghouse.
If Robinhood information with the SEC this month, it may begin buying and selling within the second quarter. It usually takes one to 2 months for corporations to get began after they file with the SEC.
(GS) advises on the Robinhood IPO.
The startup, nonetheless, shouldn’t be open to combining with a particular objective acquisition firm, an individual acquainted with the state of affairs mentioned. Barron’s. Robinhood is simply too large to merge with a PSPC, mentioned one other particular person acquainted with the state of affairs.
Robinhood is the newest excessive profile firm to hunt an IPO. Coinbase World launched its IPO prospectus on Thursday, permitting the corporate to doubtlessly launch its providing in March. Roblox, the gaming platform, shall be launched to the general public later this month. Coinbase and Roblox use direct itemizing to mine the general public fairness markets.
Goldman Sachs declined to remark.
Write to Luisa Beltran at [email protected]