The standard asset buying and selling service supplier Robinhood has filed for an IPO days after being hit with a $70 million high quality
Financial providers firm Robinhood has filed an preliminary public providing (IPO) with the US Securities and Exchange Commission. The brokerage firm has already been within the headlines this week, having been charged a $70 million penalty on Wednesday by the Financial Industry Regulatory Authority.
Several prime banks, together with Barclays, JPMorgan, Citigroup, Wells Fargo and Goldman Sachs can be underwriters as per the S-1 form. The date for the preliminary public providing is but to be set, however the firm has already confirmed its inventory can be listed underneath the ticker HOOD on NASDAQ. Robinhood said that it might put aside 20% to 35% of shares to its retail clients.
The inventory and crypto buying and selling service is eager to give you a $100 million via the IPO sale, with experiences suggesting that this determine could change. Robinhood had been trying to go public however needed to put its plans on maintain to offer the SEC sufficient time to comb via its buying and selling actions.
Data from the S-1 draft registration assertion reveals that Robinhood raked in $7.45 million of web revenue final yr primarily based on a $959 million income. The firm has seemingly made big strides on paper, contemplating it recorded a lack of over $100 million in 2019 after seeing $278 million of income. Figures from the primary quarter of 2021 present that the monetary service firm recorded a $1.4 billion loss following the GameStop quick squeeze incident.
The information additionally indicated that the corporate has an enormous footprint within the crypto sector. The filed paperwork disclosed that $17 million of the corporate’s buying and selling actions had been linked to digital property. In specific, the meme token Dogecoin represented simply over a 3rd of the platform’s cryptocurrency income this yr.
This doesn’t spell excellent news for the corporate, which admitted that if the demand for Dogecoin transactions dips with out curiosity in different crypto-assets, it will likely be closely impacted. The Menlo Park-headquartered firm moreover noticed that it had seen vital development and unlocked new ranges, noting, “If we are unable to manage our growth effectively, our financial performance may suffer, and our brand and company culture may be harmed.”
It is price noting that the corporate solely permits redemption of cryptocurrencies however doesn’t provide cryptocurrency deposit and withdrawal providers. Robinhood mentioned the identical, saying that introducing the latter providers could end in “loss of customer assets, customer disputes, and other liabilities.” It is probably going that the corporate could carry crypto deposits and withdrawals if buyer demand grows.