Robinhood Markets, the parent company of the popular Robinhood trading app, priced its initial public offering at the lower end of its estimated range and is set to make its market debut on the Nasdaq exchange on Thursday.
- Robinhood has priced its offering at $38 per share, according to a press release on Wednesday,
- The pricing is at the lower end of the $38-$42 per share price range the company had targeted. It had planned on selling 5.5 million shares to raise $1.89 billion.
- The pricing values the company at $32 billion.
- Net proceeds from the sale will go toward working capital, capital expenditures, funding tax obligations, hiring new employees and customer support services.
- Shares will be listed on the Nasdaq Global Select Market, and Goldman Sachs and JPMorgan are acting as joint lead book-running managers, according to the release.
- Earlier this month, Robinhood began unconventionally offering a portion of its IPO to users via its app — a strategy some consider to be a risky gamble.
- Still, co-founder and CEO Vlad Tenev is facing allegations from the Financial Industry Regulatory Authority over his failure to register with the regulator.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.