Robinhood, the popular stock trading app, has reportedly picked Nasdaq as the exchange for its initial public offering (IPO) when it makes its debut this year.
According to a report by CNBC.com, a final decision has not yet been made, as the company has not yet officially filed for the listing. So, Robinhood’s listing plans could even change. The report states that both Nasdaq and Robinhood declined to comment.
To set the stage for one of the biggest public debuts, Robinhood has lowered the barrier to entry for retail investors. It’s still not clear if the company has chosen a direct listing or a traditional public offering, sources said. Irrespective of the method, Robinhood plans to file for an IPO with the US Securities and Exchange Commission, people familiar with the matter told. Usually, it takes about a couple of months for companies to make their debut once they file with the Securities and Exchange Commission.
Robinhood —seen as a gateway for young investors to access the markets — became hugely popular during the COVID-19 pandemic last year, as crores of people stuck in their homes turned to online trading to while away the days and make money. The company’s mission is to “democratise” investing.
However, in January the millennial-favoured app found itself in the middle of a firestorm amid the short squeeze in GameStop, which was partially fueled by Reddit-driven retail investors. Robinhood’s brand, nevertheless, appears to be intact with bids for pre-IPO shares spiking about the GameStop mania.
Robinhood added 30 lakh users in January. Some of the biggest venture capital investors of the stock trading app include New York-based D1 Partners, Sequoia, Kleiner Perkins, and Google’s venture capital arm, GV.
Though there are no clear indications of where Robinhood is headed in the future, if these reports are an indication, we could see big moves from the trading app company soon.
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