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Robinhood Markets Inc. requested an initial public offering, and reported that it became profitable last year with losses in the first quarter, on one of the most important listings for the next year.
The company, targeting its trading platform for novice investors, has listed the size of the $ 100 million offering as a placeholder that will change when it sets conditions for the sale of shares. Thursday’s registration notice was submitted to Robinhood in March after the announcement was made confidential to the public.
Robinhood said it generated a net income of $ 7.45 million in 2020 as a result of a net income of $ 95.45 million, compared to a loss of $ 107 million in the previous year.
According to the data presented, the company’s revenue increased in the first quarter, more than $ 522 million over the same period last year compared to $ 128 million. Its losses rose astronomically, however, to $ 53 billion in the three months ended March 31, 2019, to $ 1.444 billion in the last quarter. This loss was mainly due to the adjustment of the value of the convertible notes and the liability portfolio of the guarantee, the company said in the archive.
Robinhood’s Cryptocurrency currency trading was up in the first quarter with 17% of its revenue from transactions related to it.
Robinhood’s potential valuation will be clearer when it discloses the number of shares it wants to sell and the number of prices offered to them. Bloomberg Intelligence analyst David Ritter said the company could be worth $ 40 billion.
‘Meme-Stock Frenzy’
Robinhood’s attraction was caught in a coronavirus pandemic when young people in the household turned to online shopping to spend time and earn money. Monthly active users have doubled in the last year to 17.7 million in the first quarter, up from 8.6 million in the same period last year.
This increased popularity has led to the study of politicians and regulators as the so-called gamification of bargaining and the company’s role are centered in the midst of the meme-stock frenzy.
Robinhood had to raise billions of dollars from its sponsors over the “meme stocks” of severe frenzy in late January, GameStop Corp. said. like, which became popular on Reddit forums and commercial apps.
The Financial Industry Regulatory Authority imposed a $ 70 million fine on Wednesday on Robinhood, the guard record. Finra alleged that Robinhood misled its customers about margin trading, and that technology oversight and options for merchants had expired. Robinhood neither accepted nor denied the claims.
Younger, Diverse
When presented by Robinhood, he stated that his mission is to “democratize finance for all”.
It was created by two former Stanford students, Baiju Bhatt and Vlad Tenev, who met at Robinhood University. Both are children of immigrants and raised in rural areas of the US
“The next generation of investors is younger and more diverse than ever, and today finance is as cultural as music and the arts,” Teneve and Bhatt said in a letter to investors.
The company warned in a statement that “bad advertising has had a negative impact on the past and could have a detrimental effect on our reputation in the future.”
California-based company Menlo Park said it will save between 20% and 35% of its A-level shares for customers during the filing.
The company will have two other share classes, Class B shares with 10 votes and Class C shares with no voting rights. According to the data presented, all Class B shares will be held by the company’s directors and officers after the IPO.
Major shareholders
Robinhood’s major shareholders are DST Global, Index Ventures, New Enterprise Associates and Ribbit Capital Venture Companies. Each group leads more than 5% of Robinhood shares in the offering.
The list gives another boost to the 2021 IPO market. According to data collected by Bloomberg, so far the companies, companies with blank checks, have raised more than $ 200 trillion in U.S. exchanges, the most crowded year on record. Looking at consumers such as Warby Parker Inc., Sweetgreen Inc. and Allbirds Inc. the companies are expected to make their public debuts this year, Bloomberg News reported.
Robinhood said in June that new directors would join its board, including Jon Rubinstein, who helped create the iPod for Apple Inc., and Amazon.com Inc. director Robert Zoellick, former World Bank president and Paula PricewaterhouseCoopers. partner. Loop.
Bank Creditors
The company’s credit lines include a $ 600 million revolver from JPMorgan Chase & Co., Goldman Sachs Group Inc. and the Morgan Stanley company revolver, according to data collected by Bloomberg.
Robinhood’s offering is led by Goldman Sachs and JPMorgan. Its shares are expected to be listed on the Nasdaq Stock Exchange under the symbol HOOD.
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