Business

Robin Hood closes at $ 34.82 with a tough stock market debut

File Photo: The Robin Hood logo will appear on your smartphone in front of the same logo shown in this figure taken on July 2, 2021. REUTERS / Dado Ruvic / Illustration

July 30, 2021

By Echo Wang and Noor Zainab Hussain

(Reuters)-Robinhood Markets Inc shares per share on the first day of trading as many investors who participated in this year’s “Meem” stock trading frenzy using a popular trading app blocked the initial public offering. It fell more than 8% at $ 34.82. (IPO)

According to Dealogic, whose data dates back to 1995, only 16 of the 99 US-listed companies, which were worth at least $ 10 billion when listed, declined on the first day.

“A year ago, we were trading at $ 15 per share, and the most recent deal in early June was $ 55 per share (in the private market),” said the pre-IPO. Glen Anderson, president of Rainmaker Securities, a secondary trading platform for private equities, said. Anderson said he traded about $ 200 million in Robinhood shares in the private market last year.

Robin Hood’s easy-to-use interface was a hit among young investors trading stocks such as cryptocurrencies and GameStop Corp from home during the COVID-19 pandemic. Some IPO investors prolong their concerns about the bubbling valuation, the risk of regulators cracking down on Robin Hood’s business, and the anger that the company will impose trading restrictions when the meme stock trading frenzy ignites in January. I kept on the sidelines. In a rare move, Robin Hood said he would reserve 20% to 35% of the shares for his users. Many IPOs have benefited from excluding individual investors who would fuel the first day trading pop by soaring stocks in the open market. Robin Hood has reduced the likelihood of significant profits for first-day investors by placing many retail investors under IPO tents. Aggarwal, Professor of Finance, Georgetown University. Robinhood shares sold for $ 38 on an IPO. Stanford University roommates Vladimir Tenev and Baijubat founded the company in 2013. Two people have the majority of voting rights, Bat holds about 39% of the outstanding shares and Tenev holds about 26.2%. “Providing an (IPO) to a customer may seem like a good idea, but it may not be very helpful when it comes to how to allocate shares and manage the opening of this IPO.” Kathleen Smith said. Renaissance Capital in Greenwich, Connecticut. Robin Hood has infuriated some investors and US lawmakers this year, limiting trading of some popular stocks after clearinghouse deposit requirements have increased tenfold. It is at the heart of many regulatory investigations. The company said this week that U.S. regulators had asked if employees had traded shares in GameStop, AMC Entertainment Holdings, and Inc before the transaction restrictions were imposed at the end of January.

(Report by Echo Wang in New York, edited by Noor Zainab Hussain, Ankur Banerjee, Niket Nishant, Arun Koyyur and Howard Goller in Bangalore)



Robin Hood closes at $ 34.82 with a tough stock market debut

Source link Robin Hood closes at $ 34.82 with a tough stock market debut

Back to top button