Fresh from its discomfiting Congressional hearing and onslaught of scrutiny from retail trading fanatics over its decision to halt trading in popular meme stocks, Robinhood has confidentially filed for an IPO with the SEC, according to people familiar with the matter.
Although Robinhood previously revealed it was planning to file for an IPO sometime this month, the trading platform’s mounting scandals dampened the sentiment. According to Reuters, it remains unclear whether Robinhood had filed for a public offering or a direct listing, but the company had considered the latter as a means of going public after it became unclear if its underwriter could compile enough institutional support.
Citing unnamed sources, Bloomberg revealed Robinhood could be going public as soon as the second quarter, however, given evolving circumstances, the timing could be subject to change. Back in December it was revealed Robinhood had chosen Goldman Sachs to initiate preparations for its stock market debut. Meanwhile, Bloomberg revealed the company had chosen Nasdaq as the venue of choice for its listing.
Back in February, Robinhood found itself in the midst of mounting criticism after it decided to restrain/halt trading in several popular meme stocks that were sent surging as an army of Reddit-users/retail investors punished short-sellers. The fiasco also brought to light Robinhood’s backdoor operations, mainly that being “free” trading— which turns out wasn’t free at all, but simply a means for Citadel among others to purchase retail orderflow in order to take advantage of evolving trends in the stock market.
Information for this briefing was found via Reuters and Bloomberg. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
