Goldman Sachs – Robinhood Will File for Its IPO Later This Month
Robinhood, which has faced increased scrutiny recently due to its handling of
trading, is on track to launch its much anticipated IPO in the second quarter. The trading platform is reportedly planning to file confidentially with the Securities and Exchange Commission as soon as this month.
Robinhood has held talks with its underwriters to move forward with the IPO, Bloomberg is reporting.
It’s unclear how much Robinhood will seek to raise with the offering, or if it will use a traditional IPO or a direct listing. The trading platform was valued at $11.7 billion when it raised $660 million last year.
Robinhood declined to comment.
Founded in 2013, Robinhood offers commission-free trading. The company sends customer orders to market makers like Citadel Securities, Virtu Americas, and G1X Execution services. It had 1,281 employees in 2020.
News of the IPO comes just weeks since
CEO of Robinhood Markets, faced terse questioning about the GameStop saga during a House Committee on Financial Services hearing last month. In January, Robinhood restricted buying of certain stocks including GameStop (ticker: GME),
(BB), AMC Entertainment Holdings (AMC), and
Bed Bath & Beyond
(BBBY). The company has said it was forced to curb trading because of escalating financial demands from its clearinghouse.
If Robinhood does file this month with the SEC, could begin trading sometime in the second quarter. It typically takes one to two months for companies to make their debut once they file with the SEC.
(GS) is advising on the Robinhood IPO.
The startup, however, is not open to combining with a special purpose acquisition company, a person familiar with the situation told Barron’s. Robinhood is too big to merge with a SPAC, a different person familiar with the situation said.
Robinhood is the latest high-profile company to seek an IPO. On Thursday, Coinbase Global made public the prospectus for its IPO, setting up the company to possibly launch its offering in March. Roblox, the gaming platform, is going public later this month. Both Coinbase and Roblox are using a direct listing to tap the public equities markets.
Goldman Sachs declined comment.
Write to Luisa Beltran at email@example.com