Robinhood (HOOD) IPO Opens Flat

July 29, 2021 12:25 PM EDT

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Today's IPO for online broker Robinhood Markets Inc. (NASDAQ: HOOD) opened for trading at $38 after pricing 55,000,000 shares of its Class A common stock at a price to the public of $38.00 per share, the low end of the expected $38-$42 range.

20-25% of the IPO was allocated to retail investors on the Robinhood platform, the low end of the expected 20-35% range.

Vlad Tenev and Baiju Bhatt, co-founders of the online trading business, each sold about $50 million worth of stock. These two together control 65.2% of the voting power of outstanding stock, with the former controlling 26.2% and the latter 39%.

The company reported 22.5 million funded accounts, up from 18 million in the first quarter. It is expecting Q2 revenue to come between $546 million and $574 million, much higher than the $244 million recorded a year ago. In Q1, revenue was at $522 million, up from $128 million a year prior.

Goldman Sachs & Co. LLC and J.P. Morgan are acting as joint lead book-running managers for the offering. Barclays, Citigroup and Wells Fargo Securities are acting as additional book-running managers for the offering.

Underwriters will have an option to buy a further 5.5 million shares.

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