Commission free online brokerage company Robinhood Markets Inc. has confidentially filed for an initial public offering with market regulators. The company made this announcement without going into details about the IPO.
This IPO filing comes at a time when United States capital markets have been booming due to increased trading activities and companies going public through mergers with Special Purpose Acquisition Companies (SPACs).
Back in December Robinhood announced have picked financial service provider and investment bank Goldman Sachs Group Inc. (GS) to serve as its lead underwriter in its IPO. As much as the company didn’t reveal when it would file the IPO it was clear that it was going to happen soon.
Citing data from Refinitiv, year-to-date companies have raised over $100 via IPO’s. Analysts are betting that 2021 IPO’s will beat the record $167 billion raised through IPO’s in 2020.
Robinhood said it’s yet to determine the number of shares it will float in the IPO and the IPO price for its shares.
The company seems to have reverted from its earlier plan of getting a direct listing, several weeks ago, directly involved sources had revealed Robinhood was contemplating a direct listing. A direct listing involves the company not selling any shares before its market debut.