On March 23, 2021 people familiar with the matter confirmed that Robinhood tire the online trading app, has filed confidential paperwork to pursue a $20B Initial Public Offering (IPO) on Nasdaq.
- Detailed instructions how to participate in Bumble IPO (pre-IPO, offering price) see below👇
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
In 2015, Robinhood was among the winners of Apple Design Award, which is annually awarded by Apple to the developers who release Apple based applications or significantly update them.
Robinhood Financial is a member of the Financial Industry Regulatory Authority (FINRA).
Robinhood Financial LLC is a member of the SIPC, which insures security holders for up to $500,000 (including $250,000 in case of cash claims).
The company managed to invite young stock traders (with an average age of 31 years) by offering zero commissions, an easy-to-use app, and fractional stock transactions, which led to other US brokers having to reduce their commissions to zero as well. Robinhood's trading app has a sleek design and intuitive interface, which attracts novice traders and experienced investors alike.
Robinhood provides all tools needed to have a good start, such as combining various types of securities into a single portfolio, including just one or two shares per company. One can also diversify their portfolio with a small amount, which was previously impossible due to large commissions.
The company invested a lot in its technology to keep the platform running smoothly, especially on busy days. The team is now focused on finalizing their product, so that the users may become more aware of the potential investment risks.
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
Robinhood total Funding
Robinhood latest funding size
Time since last funding
|3 months ago|
|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). This marketplace is chosen as an example because Robinhood is already listed there.
* Freedom Finance services are NOT available to US citizens and residents.
- Apply for a Freedom Finance account — 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.
- Deposit your account — to participate in an IPO, your account must have available funds in the amount you send IPO application for.
- Wait for a request to participate in the IPO — 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.
- Submit a request to participate in the IPO — 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.
- Wait for allocation — 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.
- Start of trading — 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 start— 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.
- Closing your trade — At the end of the 93 days lock-up period, you will be able to manage your stocks at your discretion — 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 ‘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
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.
In what currency Robinhood IPO and post-IPO shares will be traded?
The Robinhood IPO and stock trading currency will be USD.
If you have funds in another currency the cheapest way to convert your currency is to use the mid-market rate (that’s the one you’ll find on Google) which can be done via a fintech service like Transferwise. Banks may add hidden markups to their exchange rates - charging you more without your knowledge. And if they have a fee, they charge you twice. TransferWise never hides fees in the exchange rate.
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What is the Robinhood ticker (stock symbol)
Robinhood IPO news
- December 17, 2020 – Robinhood agrees to pay $65 million to settle SEC charges for 'misleading' investors.
- January 28, 2021 – Robinhood is at the centre of wild trading in equities this week, has raised more than $1bn from its existing investors and tapped credit lines from banks to shore up its financial position after a turbulent four days.
- February 1, 2021 – Robinhood raises $2.4bn in second cash injection in four days as day trading surge sharply boosts broker’s clearing requirements.