The much-anticipated Robinhood IPO may hit the market anytime soon. Robinhood Markets has filed a registration statement on Form S-1 with the Securities and Exchange Commission relating to the proposed initial public offering (IPO) of its Class A common stock.
As per the statement, proposed listing of Robinhood shares will be on the Nasdaq Stock Market under the ticker symbol “HOOD.” The Robinhood IPO may turn into a high-profile listing in 2021 but the actual response is yet to be seen. The date and valuation of Robinhood IPO are also awaited.
Online brokerage Robinhood has recently allowed users of its trading app to apply for IPOs. The access to IPOs will allow users to buy shares of companies at their offering price, with no account minimums required. As of now, the IPO Access on Robinhood is only available for certain users who are selected on a random basis.
What this means is that selected users of IPO Access can apply for Robinhood IPO shares from the Robinhood app itself.
Robinhood financials as per the S-1 filings:
For the year ended December 31, 2020, as compared to the year ended December 31, 2019:
- Total revenue grew 245% to $959 million, up from $278 million;
- Recorded net income of $7 million, compared to a net loss of $107 million; and
- Adjusted EBITDA was $155 million, compared to negative $74 million.
In addition, for the three months ended March 31, 2021, as compared to the three months ended March 31, 2020:
- Total revenue grew 309% to $522 million, up from $128 million;
- Recorded net loss of $1.4 billion, which included a $1.5 billion fair value adjustment to our convertible notes and warrant liability, compared to a net loss of $53 million; and
- Adjusted EBITDA was $115 million, compared to negative $47 million.
With Robinhood, people can invest in stocks and ETFs with no account minimums, buy and sell crypto, and learn about investing through easy-to-understand educational content. Robinhood’S cryptocurrency trading platform offers commission-free buying and selling of cryptocurrency.
From February 21, 2018, the day before Robinhood introduced cryptocurrency trading on their platform, to March 31, 2021, the total cryptocurrency market capitalization has grown from approximately $450 billion to approximately $1.9 trillion, driven by increased adoption of cryptocurrency trading by both retail and institutional investors, as well as continued growth of various non-investing use cases for crypto-assets.
In addition, the worldwide daily average market volume of Bitcoin, which was the most traded cryptocurrency on Robinhood platform by notional value for the year ended December 31, 2020 and for the three months ended March 31, 2021, was over $54 billion in March 2021, as compared to approximately $8 billion in February 2018.
Goldman Sachs and J.P. Morgan are acting as joint lead book-running managers for the proposed offering. Barclays, Citigroup and Wells Fargo Securities are acting as active book-running managers for the proposed offering. The offering will be made only by means of a prospectus.