Robinhood Markets, a fast growing no-fee stock trading app, announced terms for its IPO on Monday.
The Menlo Park, CA-based company plans to raise $2.2 billion by offering 55 million shares (5% secondary) at a price range of $38 to $42. New investor Salesforce has indicated on up to $150 million worth of shares in the offering (7% of the deal). Robinhood expects the underwriters to reserve approximately 20-35% of the shares offered for customers through the Robinhood app. At the midpoint of the proposed range, Robinhood Markets would command a fully diluted market value of $36.8 billion, or a basic market cap of $33.4 billion.
Robinhood is known for pioneering commission-free stock trading with no account minimums, and remains popular among young and first-time investors and traders. As of March 31, 2021, it had 18.0 million funded brokerage accounts.
Robinhood Markets was founded in 2013 and booked $1.4 billion in revenue for the 12 months ended March 31, 2021. It plans to list on the Nasdaq under the symbol HOOD. Goldman Sachs, J.P. Morgan, Barclays, Citi, and Wells Fargo Securities are the joint bookrunners on the deal. It is expected to price during the week of July 26, 2021.
