Crypto trading app Robinhood has secured a $32 billion valuations via its IPO and is set to debut on the Nasdaq exchange.
According to a press release n Wednesday, Robinhood priced its offering at $38 per Class A Common Stock share. The stock trading app will trade on Nasdaq under ticker HOOD, priced at an expected $38 to $42 per share. The offering is expected to close on August 2, 2021, subject to the satisfaction of customary closing conditions.
Robinhood is looking to sell 55 million shares at that range to raise as much as $2.3 million. Out of 55 million, Robinhood’s existing shareholders will get 5% of stocks. The net proceeds to Robinhood from sale of Class A targeting $1.89 billion raise. Goldman Sachs and JP Morgan are acting as joint lead book-running managers for the offerings. Barclays Citigroup and Wells Fargo Securities are acting as additional book-running managers for the offering.
Net proceeds from the sale will go toward working capital, funding tax obligations, capital expenditures, hiring efforts, customer support services, among others.
Additionally, the company’s CEO, Vlad Tenev, is staring down allegations from FINRA over his failure to register Robinhood.
