Browse By

Wall Street lowers the fumes on Robinhood in a stock market debut with sharp falls

The shares of the investment services platform Robinhood began to trade this Thursday, under the symbol ‘HOOD’, on the Nasdaq Global Select Market, where they have lost up to 12.25% compared to the $38 of the fixed price for your jump to the parquet.

Wall Street lowers the fumes on Robinhood in a stock market debut with sharp falls

Wall Street lowers the fumes on Robinhood in a stock market debut with sharp falls (Image: Robinhood)

Shares of Robinhood, which for a few minutes had risen by almost 6%, reaching an intraday high of $ 40.25, closed the session on Wall Street at $34.7, 8.66% below the price of the IPO transaction.

The stock trading platform, popularized by the phenomenon of ‘meme shares’, driven by individual investors coordinated through Reddit forums such as WallStreetBets, managed to raise almost $2,1 billions with the sale of 55 million titles at a unit price of $38, the lowest of the range proposed, which reached up to $42.

Read more:

Specifically, the popular stock purchase and sale app placed 52.375 million Class A ordinary shares, while shareholders of the company offered an additional 2.625 million of these same Class A shares. On their side, the entities coordinating the offer will have the option to place another 5.5 million titles.

Thus, Robinhood’s valuation is close to $32 billion, when in the last round of private financing carried out in September 2020 it was around $ 11.7 billion.

Robinhood CEO and founder Vladimir Tenev controls 7.9% of the firm, though 26.2% of the voting rights, while Robinhood Creative Director Baiju Bhatt owns 7, 9% of the capital stock, but it has 39% of the voting rights.

For 2020 as a whole, RobinHood posted a net attributable profit of $7.4 million, compared to losses of $106.6 million the previous year. On his side, revenues multiplied by more than three, reaching $958.8 million.

Leave a Reply

Your email address will not be published.