Robinhood is one of the most promising trading platforms in the industry. The company keeps rising despite recent actions that made them unfavorable in the eyes of part of traders. According to the last report, the firm filed confidentially for initial public offering (IPO) on Monday.
Robinhood showed confidence in its future with a short statement on Tuesday afternoon it has submitted a draft registration statement on Form S-1 with the Securities and Exchange Commission for IPO.
The number of shares planned to sell and the time of the action were not stated by the Silicon Valley startup.
The announcement stated: “The number of shares to be offered and the price range for the proposed offering have not yet been determined. The initial public offering is expected to take place after the SEC completes its review process, subject to market and other conditions.
Robinhood has selected Nasdaq for the listing according to Blomberg which released the news first.
The customer base of the company heavily depends on young people looking for different ways of compensating for their losses during the lockdown. The most appealing feature of the firm is its zero commission business model.
The increasing popularity of the platform has also been damaged by the public-relations problems at the beginning of the year. The GameStop madness was not a good test for the company as it has stopped users to execute transactions on the stock.
Another incident was a young boy who committed suicide after seeing that he owned $730,000 due to the mistake made by the company.
Despite the challenges the trading app faced, it continues to grow and add new users.
Goldman Sachs will be the leader of the development of initial public offering from the company with an expected value of over $20 billion. The value of the company was stated as $11 billion in September 2020 and the number seems to increase in the near future.