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Robinhood files SEC paperwork for public offering

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Robinhood Markets Inc., a well-liked buying and selling app that just lately expanded its cryptocurrency enterprise, has filed paperwork with america Securities and Alternate Fee, or SEC, to go public.

The corporate confirmed Tuesday that it had confidentially submitted a draft registration assertion on Type S-1 with the SEC referring to the proposed public offering of its widespread inventory. Type S-1 requires firms to supply extra detailed info on the deliberate use of capital proceeds., in addition to a quick prospectus on the proposed safety.

Whereas Robinhood didn’t specify when the IPO would happen, it confirmed {that a} public offering can be pursued “after the SEC contemplates its review process, subject o market and other conditions.”

Hypothesis a couple of Robinhood IPO has circulated for months amid information that the corporate had lined up a crew of advisers to information it by means of the itemizing course of. In October 2020, CEO and co-founder Vlad Tenev advised CNBC that he was “not in a rush” to push a public itemizing as a result of the corporate was effectively funded.

Public opinion of Robinhood soured earlier this yr – and should have stalled the IPO course of – after the corporate determined to halt buying and selling of GameStop. An nameless survey performed in January through the Blind networking discussion board discovered that, amongst 8,750 verified finance professionals, 83% believed Robinhood had “screwed its IPO.”

Robinhood added 6 million new cryptocurrency customers in January and February 2021, which was 15 occasions larger than the typical determine in all of 2020. The corporate has introduced plans to increase its crypto providers to permit for deposits and withdrawals for crypto belongings.

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