Robinhood is seeking a market valuation of as much as $35 billion in its upcoming initial public offering, according to an amended SEC filing released Monday.
The stock trading app will attempt to sell its share at a range of $38 to $42 per share, according to the updated prospectus. Robinhood is looking to sell 55 million shares at that range to raise as much as $2.3 billion.
Robinhood — which plans to trade under the symbol “HOOD” on the Nasdaq — also updated several of its financial and user metrics in the amended filing. The company estimates it has 22.5 million funded accounts (those tied to a bank account), up from 18 million in the first quarter of 2021.
The Menlo Park, California-based free-trading pioneer estimates second quarter 2021 revenue between $546 million and $574 million. This would be an 129% increase in revenue from the $244 million made in the second quarter of 2020. The company generated $522 million in revenue in the first quarter if 2021.
Robinhood’s last private market valuation was $11.7 billion, raised last September.
Goldman Sachs, Citigroup and JPMorgan are the lead underwriters on the deal, among other banks.
Robinhood’s longstanding mission is to “democratize” investing and is seen as the main gateway for young investors to access the markets. The app experienced record levels of new, younger traders entering the stock market during the pandemic and during the GameStop trading mania.
Competitors of Robinhood include Fidelity, Charles Schwab, Interactive Brokers and start-ups like Webull and Sofi. Charles Schwab has a market capitalization of $130 billion and Interactive Brokers has a market valuation of $26 billion.
Robinhood — which offers equity, cryptocurrency and options trading, as well as cash management accounts — is expected to make its public debut by the end of next week.
Robinhood is a five-time CNBC Disruptor 50 company that topped this year’s list.
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