Robinhood (NASDAQ:HOOD), a Fintech that became a public company last month, has distributed a note indicating that underwriters have exercised a portion of the share over-allotment. The customary practice allows underwriters to purchase more shares at the IPO price. Robinhood states that our of the 5,500,000 shares of Class A common stock over allotment, 4,354,194 shares of Class A common stock were purchased at $38 a share.
Robinhood gains a net amount of capital of approximately $158.5 million. Robinhood expects to close the issuance of the additional shares on August 31, 2021.
Robinhood currently trades at around $46 a share with a market cap of over $39 billion. Robinhood has traded as high at $85 a share and a low of around $33 a share.
Analysts land on either side of the prospects for the digital trading platform with four buy ratings, five hold ratings and a single analyst advising investors to sell the stock. One analyst has posted a price target of $68 a share.