The founders of the popular trading app want to raise $2 billion in an upcoming IPO, which would put the company’s valuation at $35 billion.
Robinhood, the company behind the popular stock trading app aims to sell 55 million shares in an upcoming initial public offering. The company will trade on Nasdaq under the symbol HOOD.
Robinhood aims to sell its shares from $38 to $42 per share. The transaction would give the company a valuation of $35 billion.
A valuation of $35 billion would put Robinhood ahead of companies such as Hewlett-Packard and Nokia in market capitalization.
Robinhood claims it is “democratizing investing.” It does so by reducing the barrier to entry to the stock market, making it more accessible to retail investors.
Robinhood accomplishes this goal by reducing fixed costs to investors as well as gamifying the investment process.
Robinhood app played a critical role in the meme-stock phenomenon, a new trading strategy that relies on social media coordination by retail investors.
Robinhood played a key role in the GameStop short squeeze. However, its role is was not without controversy. The company was criticized for restricting the buying of the stock when it was trading at its highest point.
The company cited “market volatility” as a reason for its decision. Retail investors saw the decision as proof that Robinhood was siding with Wall Street insiders.
Despite the PR fiasco, Robinhood is still the number one trading App in the U.S.