Robinhood Markets Inc., is an online brokerage company with a stock trading and investing app aimed at younger retail investors. The company, an early adopter of zero-commission trades, filed for a confidential initial public offering (IPO) on March 23, 2021. A confidential IPO allows a company to submit an initial draft of its S-1 to the Securities and Exchange Commission (SEC), which only needs to be made public 15 days before any promotional roadshow or, if there's no roadshow, 15 days before the IPO.2
The advantage of filing confidentially is that the company has more control over its IPO date and can make changes to its IPO filing without needing to manage public relations.
This means Robinhood has not released the expected date, price range, share count, and total valuation of its IPO. However, its other financial disclosures can help give us context while we wait KEY TAKEAWAYS
Robinhood is a California-based fin-tech company with a stock trading and investing app targeted at younger retail investors.
It filed for a confidential IPO in March 2021. Robinhood has not made the details of the offering public yet.
Robinhood has raised a total of $5.6 billion from private investors and was reportedly valued at $40 billion at its most recent funding round in February 2021.
Robinhood was charged by the SEC in December 2020 for delivering sub-par trade execution to its customers.
Robinhood has been in the news extensively in 2021 due to its popularity with traders involved in the GameStop short squeeze.