Robinhood is a financial solution company which is headquartered in Menlo Park, California. It came into existence on 18th April 2013 and is dedicated to facilitating the works as a commission-free trade of stocks, swapping the traded funds and cryptocurrencies, through a mobile application, named Robinhood, introduced in 2015.
Baiju Bhatt and Vladimir Tenev founded this company which is a FINRA-regulated broker-dealer, a member of the Securities Investor Protection Corporation, and also registered with the Securities and Exchange Commission of the U.S.
The financial services company has posted on its official app that they have sold their IPO shares to more than 3 hundred thousand of its customers.
The post specifically states that in the IPO, 301, 573 customers participated and raised about $2 billion which in turn valued Robinhood at $32 billion.
By soldering a large chunk of its share in the vehemently anticipated debut to their small-time investors of its app, the company is on the way to breaking the recent wall of the street.
The wall street journal reported earlier that almost 25% of shares of IPO have gone to the customers of Robinhood and an individual investor will get well under 10%.
25 % allocation means on average, a total of $1,600 has been spent by each participating customer of Robinhood, to buy 41 shares.
This decision helped the trading in Robinhood shares to make an explosive 1st day of trading. The next day means Thursday, the stock opened with an IPO price of $38 and then swiftly reduced to 10% and finally closed down at $34.82, which is just 8%. But on Friday, the stock did slightly better and closed up about 1% at $35.15.
The number of users who participated in the deal is very high for a typical IPO, offered on an application.
To date, the shareholders of Robinhood company are The Vanguard Group Inc.( Stake- 6.52%), ARK Investment Management LLC(Stake- 4.37%), Nikko Asset Management( Stake- 3.10%), Black Rock Fund Advisor( Stack- 2.37%), etc.
Conclusion
The American financial services company Robinhood has announced through a post on its trading app that it has sold its IPO shares to more than three hundred thousand of its customers. Robinhood Sold IPO Shares to over 300,000 of Its Customers. The company gives complete details about its new strategy and aims to get better revenue out of it. It represents about 1.3% of the 22.5 million funded account of the company.
FAQs
Ans. Robinhood is a financial service provider which is dedicated to facilitating the work of commission-free trade of stocks, swapping the traded funds and cryptocurrencies, through a mobile application, named Robinhood.
Ans. Baiju Bhatt and Vladimir Tenev founded this company.
Ans. Yes, Robinhood is a FINRA-regulated broker-dealer.
Ans. Almost 25% of IPO shares have been sold by Robinhood in this deal to its users.
Ans. The raising closed to $2 billion.
