CNBC reported that Robinhood, an online stock trading app that is seeking to be listed on the NASDAQ, expects to be valued at up to $35 billion through IPO.
According to reports, Robinhood reportedly offered $38 to $42 per share in a revised version of the listing application submitted to the U.S. Securities and Exchange Commission (SEC).
Robinhood is planning to sell about 55 million shares through the IPO, which is expected to reach $35 billion if the public offering price per share is set at $42, the top of the range of hope.
Robinhood’s IPO organizers are a dozen global investment banks, including Goldman Sachs and JPMorgan, and Robinhood plans to hold an online briefing session with general investors on the 24th for the IPO. Robinhood allocated 20 to 35 percent of listed shares to allow its customers to subscribe. The Nasdaq listing is expected to take place on the 29th, Bloomberg reported.
Robinhood has expanded its customers with free transaction fees as its advantage, and in particular, attracted a large number of young people with the “meme stocks” craze, including GameStop, this year.
The number of active users of Robin Hood doubled to 17.7 million in the first quarter of this year to 8.6 million a year ago.
Robinhood made a net profit of $7.45 million last year, and net sales reached $959 million. In 2019, the company posted a deficit of $17 million in sales of $278 million.
However, noise is continuing, such as frequent suspension of the system and concerns over speculation. It is also under investigation by regulators by limiting the purchase of individual investors at the time of soaring Gamestop stock prices, which were also considered a “short selling war” between individual investors and hedge funds.