Inventory buying and selling app firm Robinhood says it has submitted a confidential plan to go public later this yr
CHARLOTTE, N.C. — Inventory buying and selling app firm Robinhood stated Tuesday that it has submitted a confidential plan to go public later this yr.
The corporate primarily based in Menlo Park, California, filed the paperwork with the Securities and Trade Fee whereas on the middle of a battle between on-line activist retail traders and institutional traders over corporations equivalent to GameStop and AMC Leisure. Robinhood needed to limit buying and selling of these corporations earlier within the yr, and has been topic to congressional investigations.
Robinhood didn’t disclose the dimensions of its preliminary public providing, or the place it plans to commerce its inventory. CNBC reported earlier this yr that the corporate was planning on itemizing on Nasdaq and that Goldman Sachs is the lead funding financial institution advising it on its plan to go public.
Robinhood discovered success — in addition to important criticism — for its enterprise mannequin making inventory buying and selling simpler for retail traders. The corporate’s app permits traders to purchase fractions of a share in an organization, and turns inventory buying and selling into virtually a sport.
It is this ease of use that received the corporate into sizzling water earlier this yr, when exercise surged on its app as on-line retail traders began shopping for up shares of beaten-down corporations to guess towards Wall Avenue’s brief sellers, who’re traders attempting to earn a living betting a inventory will go down.
Robinhood needed to search emergency funding from enterprise capitalists with a purpose to meet its regulatory necessities and needed to limit buying and selling in these shares.