Robinhood confidentially files for IPO

Robinhood will reportedly let users buy shares from its IPO.

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Robinhood, maker of the same-named investing app popular among millennials and central to the GameStop stock controversy, has filed confidentially for an initial public offering, the company said in a blog post Tuesday.

“The number of shares to be offered and the price range for the proposed offering have not yet been determined,” the company said. “The initial public offering is expected to take place after the SEC completes its review process, subject to market and other conditions.”

Robinhood will also let users buy shares from its IPO, according to a report by Reuters on Thursday. Normally, IPOs are limited to certain firms that have business with the broker handling the IPO and rarely do amateur traders have access to buying stock until some time later, when shares have already increased in price. 

Robinhood didn’t immediately respond for comment. 

In January, video game retailer GameStop saw its stock skyrocket thanks to traders on Reddit. Robinhood made the controversial move of preventing users from buying stock in the retailer during the trading frenzy, causing a huge backlash from users. The investing app also became the target of lawmakers and regulators, leading to a congressional hearing and investigations about Robinhood’s decisions.

Founded in 2013, Robinhood saw a surge in popularity because of its free trades and ease of use. As more people began trading on the platform, state regulators and academics began accusing the company of “gamifying” investing. Last June, a 20-year-old user committed suicide after he believed he’d racked up $730,000 in losses. 

The IPO news was reported earlier by Bloomberg.

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