Robin Hood seeks up to $ 35 billion in valuation as a public company

Robin Hood, this year Memestock phenomenonWill go public next week for a market valuation of up to $ 35 billion.

The company said in a regulatory filing Monday that it hopes to set the price of 55 million shares in the initial public offering in the range of $ 38 to $ 42 per share. If the stock is sold up to the range, it could raise about $ 2.3 billion.

Robin Hood offers approximately 52.4 million shares. The company’s founders, Baiju Bhatt and Vladimir Tenev, and Chief Financial Officer Jason Warnick have provided approximately 2.6 million shares. The company does not receive revenue from the shares sold by its executives and founders.

Robin Hood’s IPO gives investors the opportunity to own most of the companies that have rocked the traditionally stable intermediary business since their debut in 2014.Robin Hood becomes a rival by offering free deals to small investors Get rid of fees Create an app that facilitates trading. But the popularity of fast-growing stock trading companies hasn’t come without increased pain. Robin Hood $ 70 million fine Early this month.

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Some critics Claims that the app encourages dangerous behavior among novice investors and improperly allows some users to take more risk than they are probably ready to take.Robin Hood has also been criticized for not making it clear to customers that it makes most of its money. Route their transactions For Wall Street companies taking the other side, or so-called “order flow payments”.

The company plans to offer its clients up to $ 770 million worth of shares via the platform. The quote is based on an offer price of $ 40 per share, the company said in a filing.

Meanwhile, the venture capital division of business software company has shown interest in buying up to $ 150 million in Robin Hood shares at IPO prices, Robin Hood said.

17.7 million, mainly first-time investors

Based in Menlo Park, California, the company reported that it had 17.7 million monthly active users as of March, with more than half of its customers being first-time investors.

Many of those first-time investors started trading in Robin Hood because of the popularity of memetic stocks like GameStop. Subsequent trading enthusiasm forced Robin Hood to limit some trading due to mass trading, which elicited government oversight.

Robin Hood said in a filing that he expects total sales for the April-June quarter to be $ 574 million, more than double the previous year’s $ 244 million. Still, the company forecasts losses in the range of $ 487 million to $ 537 million in the fourth quarter. Robin Hood posted a profit of $ 58 million in the same quarter last year.

The company forecasts third-quarter earnings to decline due to low levels of trading activity.

The company plans to make its stock market debut on July 29th. Listed on NASDAQ with the “HOOD” ticker symbol.

Underwriters have the option of purchasing 5.5 million shares to cover all totals.

Robin Hood seeks up to $ 35 billion in valuation as a public company

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