Robinhood (HOOD) IPO Prices at $38, Low End of Range

July 28, 2021 9:23 PM EDT

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Robinhood Markets Inc. (NASDAQ: HOOD) announced the pricing of its initial public offering of 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.

In the offering, 52,375,000 shares are being offered by Robinhood and 2,625,000 shares are being offered by existing stockholders. The underwriters will have a 30-day option to buy an additional 5,500,000 shares from Robinhood at the initial public offering price, less underwriting discounts and commissions. The net proceeds to Robinhood from the sale of Class A common stock in this offering will be approximately $1.89 billion. Robinhood will not receive any proceeds from the sale of shares by the selling stockholders. Robinhood intends to use the net proceeds for working capital, capital expenditures, funding its anticipated tax obligations related to the settlement of RSUs, and general corporate purposes including increasing its hiring efforts to expand its employee base, expanding its customer support operations and satisfying its general capital needs.

The shares are expected to begin trading on the Nasdaq Global Select Market on July 29, 2021, under the ticker symbol “HOOD”. The offering is expected to close on August 2, 2021, subject to the satisfaction of customary closing conditions.

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.

Robinhood Markets is on a mission to democratize finance for all. With Robinhood, people can invest with no account minimums through Robinhood Financial LLC, buy and sell crypto through Robinhood Crypto LLC, and learn about investing through easy-to-understand educational content. Robinhood aims to build the most trusted and most culturally relevant money app worldwide.



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