Just 1% of Robinhood users participated in the online trading app's IPO
- Just 1.3% of Robinhood users participated directly in the online trading app's IPO last week.
- 301,573 Robinhood users bought shares of the company at its IPO price of $38 per share.
- Robinhood is seeking to give retail investors direct access to IPO debuts.
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Robinhood directly sold shares of itself to 1.3% of its customer base when it went public last week at a price of $38 per share, the company said on its website. The company had more than 22 million funded accounts as of June 30.
Robinhood is seeking to expand retail investors' access to IPO listings, enabling them to buy at the IPO price which can sometimes lead to big one-day gains if the stock pops when it goes public. IPO access is typically limited to institutional investors and their clients.
The online trading app was one of the first companies it sold IPO shares of to its customer base, alongside recent IPOs like Duolingo and Clear Secure. While only 301,573 of Robinhood's users participated in its IPO, it was by far the best showing to date for the company's direct-IPO offering.
Last month, 12,602 of Robinhood customers bought Duolingo at its IPO price, while 78,250 customers participated in the F45 Training IPO.
The customers that bought shares of Robinhood at its IPO price didn't get the one-day pop they were likely expecting, as shares tumbled as much as 12% in its trading debut. Shares currently trade at $36.61, representing a 4% decline from its IPO price.
