Robinhood Markets, a no-commission retail brokerage platform, raised $2.1 billion by offering 55 million shares (5% secondary) at $38, the low end of the range of $38 to $42.
Robinhood expects the underwriters to reserve approximately 20-35% of the shares offered for customers through the Robinhood app. New investor Salesforce indicated on up to $150 million worth of shares in the offering. At pricing, the company commands a fully diluted market value of more than $30 billion.
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At quarter-end, Robinhood had 18.0 million funded accounts, up from 12.5 million at the beginning of the quarter amid a surge of retail trading activity. The company primarily generates revenue from routing customer trades to market makers (payment-for-order-flow), including options, equities, and cryptocurrency.
Robinhood Markets plans to list on the Nasdaq under the symbol HOOD. Goldman Sachs, J.P. Morgan, Barclays, Citi, and Wells Fargo Securities acted as joint bookrunners on the deal.
