Robinhood plans to raise over $2.3 billion by offering about 55 million shares. Its founders and chief financial officer will offer another 2.6 million shares. The company expects to price its shares between $38 and $42.
Founded eight years ago by Stanford roommates Vlad Tenev and Biju Bhatt, Robinhood became the go-to platform for young investors trading from home during the health crisis. Users are attracted by its commission free trades and easy-to-use platform.
The trading mania in meme stocks like GameStop and AMC Entertainment helped revenue quadruple between January and March. But the massive trading jump forced it to curb transactions of some hot stocks and raise $3.4 billion in emergency funds earlier this year to meet its obligations to clearing houses.
Robinhood's own shares will debut on the Nasdaq and trade under the ticker, "HOOD."
After the offering, its co-founders will hold a majority of the voting power.
