initial public offerings (IPOs) trading on American exchanges

Tuesday, February 2, 2021

Robinhood IPO expected in Q2 2021

Robinhood Markets, the trading app that has come under scrutiny for GameStop trading, is moving forward with plans to go public, four bankers and venture capitalists said. 
  • Founded in 2013, Robinhood offers commission-free trading in stocks, ETFs, options, and cryptocurrencies as well as margin. 
  • The company sends customer orders to market makers like Citadel Securities, Virtu Americas, and G1X Execution services. 
  • It had 1,281 employees in 2020. 
The startup’s IPO plans are on track and an offering is expected in the next few months, likely in the second quarter, three of the people said. 

“The [Robinhood] IPO is full steam ahead,” one of the bankers said. Goldman Sachs (ticker: GS) is advising on the offering, one of the people said. 

An IPO would let Robinhood raise fresh capital while allowing the company, once public, to access financing, people said. Robinhood was pushed to raise $3.4 billion in the past week after a buying frenzy forced the trading platform to boost the money it deposits with the clearinghouses that process its trades. 

Executives for Robinhood and Goldman declined to comment. 

On Monday, Robinhood said it added another $2.4 billion in a round led by Ribbit Capital. That funding came after the startup raised $1 billion from current investors last week. 

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