Robinhood IPO Raises $2.1B — Trading App Now Has Valuation of $31.8B
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Robinhood IPO Raises $2.1B — Trading App Now Has Valuation of $31.8B

1 year ago

Robinhood’s shares will soon make their debut on the Nasdaq using the ticker HOOD.

Robinhood IPO Raises $2.1B — Trading App Now Has Valuation of $31.8B

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Robinhood has successfully completed its initial public offering — raising a cool $2.1 billion in the process.

A total of 55 million shares were sold for $38 apiece. However, this is at the lower end of the $38 to $42 range that had been established.

All of this means that the popular trading app now commands a value of $31.8 billion.

Robinhood’s shares will soon make their debut on the Nasdaq using the ticker HOOD.

The company was at the heart of the Reddit-fueled short squeeze on so-called meme stocks earlier this year — and controversially imposed trading restrictions on GameStop back in January when its share price dramatically surged from $17 to $483.

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Big Plans 

It’s also worth noting that Robinhood is becoming an increasingly dominant force in the world of cryptocurrencies, with executives planning to aggressively expand the suite of services that it offers.

Crypto lending, staking and wallets have all been highlighted as milestones on its roadmap — giving users the freedom to move their assets to external wallets and earn interest on their investments.

Staggeringly, about 6% of its total revenue solely came from trades in Dogecoin, and the company has admitted that “net revenue earned from cryptocurrency transactions may slow or decline if the market for Dogecoin deteriorates or if the price of Dogecoin declines.”

Some analysts have raised concerns about the valuations that have been attached to companies such as Robinhood and Coinbase. With competition in the world of crypto trading increasing, a “race to the bottom” on transaction fees could dramatically eat into revenues and overall profitability.

Robinhood, which has long positioned itself as a platform aiming to democratize trading, has said that it plans to earmark up to 35% of its 55 million shares to investors using its app.

It remains to be seen how Robinhood performs on its first day of trading, with data suggesting that IPOs have actually underperformed in recent months when compared with the S&P 500.

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