After the GameStop case, Robinhood is ready to go public
After the GameStop case
The initial public offering of the trading platform would be based on a valuation of $ 30 billion, compared to $ 11.7 billion last year
The Robinhood trading app (press photo) The American platform for online trading Robinhood is planning to go public on the New York Stock Exchange with a confidential initial public offering (IPO), and by March it could submit the documents to the US regulator SEC, according to rumors gathered by Bloomberg. Discussions with the intermediary underwriters have already begun, regarding the hypothesis, but there is still no sure date. Robinhood's notoriety exploded with the phenomenon of speculation about the GameStop title, however the IPO would have been a target already last year, at least. Just in September, after a $ 460 million funding round, the brokerage app was valued at $ 11.7 billion.A first tranche of the IPO will convert the loans into equity based on a valuation of 30 billion dollars, or with a 30% discount on the valuation given by the market, if this is lower. Robinhood last year hired Goldman Sachs to lead IPO preparations based on a valuation of more than $ 20 billion, according to Reuters. Now, it seems, the company is considering selling some shares directly to its own users during the IPO, according to Bloomberg, which is unusual since retailers don't usually buy at the offer price, but can invest from day one. of exchanges.
At the beginning of 2021, its notoriety exploded with the GameStop phenomenon, so much so that it had to raise an additional 3.4 billion dollars from its lenders in a liquidity crisis to replenish the collateral to guarantee transactions in clearing house, at the request of the clearing house Dtcc. Robinhood, which is a broker regulated by the US authority Finra, has since faced a number of regulatory inquiries, including a hearing on the Congressional Financial Services Committee. In addition, about 90 lawsuits and class actions have been filed throughout the United States by retail investors who, during the short squeeze on GameStop, have seen the possibility of buying 50 titles limited. Nearly half of Robinhood's business comes from payment obtained per order flow, delivered for execution to market participants such as Citadel, the largest in the US.
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FILE PHOTO: Andrew Left, the founder of Citron Research, speaks during the Reuters Global Investment 2019 Outlook Summit, in New York, U.S., November 12, 2018. REUTERS/Brendan McDermid
Thursday, February 25, 2021
FILE PHOTO: Andrew Left, the founder of Citron Research, speaks during the Reuters Global Investment 2019 Outlook Summit, in New York, U.S., November 12, 2018. REUTERS/Brendan McDermidClose
