Robinhood Prices Shares at $38, Shares Expected to Trade on July 29th

Robinhood has priced its initial public offering (IPO) of 55,000,000 shares of its Class A common stock at $38.00 per share. It was previously reported that Robinhood would float its shares at up to $42 each. Robinhood said a registration statement was declared effective by the Securities and Exchange Commission on July 28, 2021.  The shares are expected to begin trading on the Nasdaq on July 29, 2021, under the ticker symbol “HOOD.”

Robinhood is expected to offer 52,375,000 shares with 2,625,000 shares are being offered by existing stockholders. Offering underwriters will have a 30-day option to buy an additional 5,500,000 shares from Robinhood at the initial public offering price.

The net proceeds to Robinhood will be approximately $1.89 billion.

As of March 31, 2021, Robinhood reported 18.0 million funded accounts with over half of these customers indicating Robinhood was their first brokerage account. A majority of account holders signed up for Robinhood organically or via a referral program.

Robinhood explains its mission as follows:

“Our vision is for Robinhood to become the most trusted and most culturally relevant money app worldwide. We innovate at the epicenter of finance, technology, and access for all. As we look to the future, we want to help Robinhood customers manage all aspects of their financial lives in one place. We envision them moving seamlessly between investing, saving, and spending all on the Robinhood platform. When we check our email, there is a go-to app. When we need a map, there is a go-to app. We envision a world in which Robinhood is that go-to app for money. We believe people want to build financial independence and have the tools and ability to own their financial well-being. We look forward to being our customers’ single money app that enables them to achieve those goals.”

The IPO is one of the most anticipated Fintech IPOs of the year. Robinhood has not been without its challenges, both operationally and on a compliance basis, but the trading platform has emerged as a highly popular brokerage with a younger generation. Users may trade traditional stocks, crypto and, if approved, derivatives. Robinhood seeks to become the one-stop shop for all your financial services needs – on a global basis. From banking, to trading, to investing and more, Robinhood aims to be the one platform to rule them all.

Goldman Sachs & Co. LLC and J.P. Morgan are joint lead book-running managers for the offering. Barclays, Citigroup and Wells Fargo Securities are acting as additional book-running managers for the offering.


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