On December 8, 2020 people familiar with the matter confirmed that stock trading app Robinhood has selected Goldman Sachs as their underwriter to lead preparations for an initial public offering (IPO) which will come in 2021 and value it at more than $20 billion. The exact timing and valuation could change depending on the market conditions, the sources said.

  • Detailed instructions how to participate in Bumble IPO (pre-IPO, offering price) see belowπŸ‘‡
Robinhood Initial Public Offering IPO. Image source: Robinhood.com

What is an IPO and how it works

IPO is a process of offering shares of a private corporation to the public in a new stock issuance. Why go public? The primary benefit of going public is easier access to capital.

To go public, a company must have a track record of growth and other favorable results and hire an investment bank (Goldman Sachs in Robinhood case) to come in and underwrite the IPO. The underwriters also performed due diligence and verified financial information and business model.

Once the paperwork done, the company sells the stock to institutional investors. When the initial block of shares has been sold, the company sets an initial price and date for the stock to begin trading on a stock exchange.

Financial Indicators before Robinhood Markets Inc IPO

Industry: Fintech
Founded: 2013
Valuation: $11,2 billion
Key Investors: Index Ventures, New Enterprise, Sequoia Capital

According to a source at The Forbes, the Robinhood is going to get $700M in earnings this year which is +250% compared to 2019. In Q2 2020, the earnings amounted to $360M, while the client assets reached $20B, as reported by Bloomberg and SEC.

Robinhood has raised over $2.20B since 2013. Amidst the pandemic, this leading broker experienced a surge in demand, as retail investors were expecting the stock market recovery. As of September 2020, Robinhood Markets is valued at $11.70B.

Boasting more than 13 million customers, Robinhood could be one of the top initial public offerings of 2021, valued at $20 billion or more.

Robinhood Previous Funding Rounds Summary

Founding Date

2013

Robinhood total Funding

$2.2 b

Robinhood latest funding size

$460 m

Time since last funding

3 months ago

Robinhood investors

Index Ventures, Sequoia Capital, New Enterprise Associates, Andreessen Horowitz, DST Global, Thrive Capital, Dave Morin, Aaron Levie, Slow Ventures, Ribbit Capital, Rothenberg Ventures, Tim Draper, Nasir "Nas" Jones, QueensBridge Venture Partners, Social Leverage, Susa Ventures, Kortschak Investments, Iconiq Capital, Lee Linden, Vaizra Investments, Jared Leto, Howard Lindzon, IT Ventures, Michael Liou, Greenoaks Capital, Machine Shop Ventures, IVP, Jordan Mendell, GV, Todd Corenson, Snoop Dogg, Localglobe, LAUNCH, Nurzhas Makishev, Kevin Moore, CapitalG, Elefund, ARRIVE, Kleiner Perkins C & B, Unusual Ventures, Thirty Five Ventures, 9Yards Capital, Parafi Capital, Kevin Milden, Chainfund Capital, TSG Consumer Partners, New Enterprise Associates (NEA), D1 Partners, Sutton Capital

How to Buy Robinhood Stocks Before the IPO (Offering Price)

In the past, IPOs as highly profitable investments were available only to the privileged customers of the leading brokerage firms and it was challenging for retail investors to gain access. You couldn't buy shares paying the price set by the company and you had to wait until the shares actually start trading on the public stock market at whatever stock price supply and demand allows.

Technologies and marketplaces changed the rules of the game, now regular investors can get pre-IPO shares. To participate in Robinhood IPO you need to use an IPO investing app like Freedom Finance (NASDAQ: FRHC), TD Ameritrade or Fidelity. They give its customers access to IPOs and secondary offerings through their existing brokerage account. Also you can buy Robinhood shares when the company goes public via a commission-free trading app like eToro.

🚨 Detailed Instructions How to Participate in the Robinhood IPO before public trading:

Below we share the instruction how to participate in the approaching Robinhood IPO using Freedom Finance (Tradernet platform). Β This marketplace is chosen as an example because Robinhood is already listed there.

* Freedom Finance services are NOT available to US citizens and residents.

  1. Apply for a Freedom Finance account β€” you need to prepare your identity document and a document confirming the address of residence (utility bill). The verification process is very fast, it will take 2 minutes to create your account.
  2. Deposit your account β€” to participate in an IPO, your account must have available funds in the amount you send IPO application for.
  3. Wait for a request to participate in the IPO Β β€” a few days before IPO date you will get a notification (email and SMS text message) from Freedom Finance. You will have about 48 hours to apply for the IPO.
  4. Submit a request to participate in the IPO β€” when you get a notification that you can apply to buy shares, go to IPO section of the platform > you will see the IPO listing with the share price set by the underwriter > click Participate in the IPO > input the amount you want to invest > Send your application. Note: Before the book closing, a request can be withdrawn. At the time of the book closing, 1 day before the start of the exchange trading, the specified amount will be blocked on the account.
  5. Wait for allocation β€” The actual number of stocks purchased during an IPO depends on supply and demand. The higher underwriter reserves the right to partial execution of collective applications. So if the demand is high you may get less than you applied for. Of course, you will only pay for the shares purchased. The rest of the funds will be returned to your account.
  6. Start of trading β€” With the beginning of the public trading on the stock exchange, the purchased shares will appear on the account and a lock-up period will startβ€” a 93-day period of prohibition on sale. You can’t sell stocks, but you can track their current value and growth indicators in your personal member area and a trading terminal.
  7. Closing your trade β€” At the end of the 93 days lock-up period, you will be able to manage your stocks at your discretion β€” leave in the portfolio or sell and withdraw money or transfer the stocks to another depository/ broker in your name. This can be done in your account by clicking the β€˜Sell’ button next to the name of the security. In this case, a commission of 0.5% of the amount of the sale transaction is charged.

When is the Robinhood IPO date

2021

We will update when the exact Robinhood IPO date is known – if you want to get notified please subscribe for updates here.

What is Robinhood IPO price range?

We will update when the Robinhood IPO offering price is known – if you want to get notified please subscribe for updates here.

How to Invest in Robinhood after the IPO date (opening price)?

After the IPO you can buy Robinhood stocks via a commission-free trading app like eToro on the first trading day.

What is the Robinhood ticker (stock symbol)

Unknown yet.

Robinhood IPO news

  • December 17, 2020 – Robinhood agrees to pay $65 million to settle SEC charges for 'misleading' investors.