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 mentioned Tuesday that it has submitted a confidential plan to go public later this yr.
The corporate based mostly in Menlo Park, California, filed the paperwork with the Securities and Change Fee whereas on the middle of a battle between on-line activist retail buyers and institutional buyers over firms comparable to GameStop and AMC Leisure. Robinhood needed to limit buying and selling of these firms earlier within the yr, and has been topic to congressional investigations.
Robinhood didn’t disclose the scale 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 buyers. The corporate’s app permits buyers to purchase fractions of a share in an organization, and turns inventory buying and selling into nearly a sport.
It is this ease of use that received the corporate into scorching water earlier this yr, when exercise surged on its app as on-line retail buyers began shopping for up shares of beaten-down firms to wager in opposition to Wall Road’s brief sellers, who’re buyers making an attempt to generate profits betting a inventory will go down.
Robinhood needed to search emergency funding from enterprise capitalists in an effort to meet its regulatory necessities and needed to limit buying and selling in these shares.
