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  4. Robinhood is now eyeing an IPO in July at a $40 billion valuation, report says

Robinhood is now eyeing an IPO in July at a $40 billion valuation, report says

Shalini Nagarajan   

Robinhood is now eyeing an IPO in July at a $40 billion valuation, report says
Stock Market1 min read
  • Robinhood is aiming for a July IPO after delaying its plans this month, Bloomberg reported.
  • The investment app wants to wait until people return from the July 4 holiday, the report said.
  • The platform rolled out a service to let investors to buy into IPOs, including its own, last month.

Robinhood is targeting a stock market debut in July, after its plan to go public this month fell through, Bloomberg reported.

The popular investing-app provider, expected to trade on the Nasdaq index, wants to time its initial public offering for when people return from the US Independence Day holiday break next month, Bloomberg said on Tuesday, citing sources.

The decision isn't final, and Robinhood's plans are subject to change.

The company confidentially filed for an IPO in March, aiming to make its debut in late June. But its prospectus with the securities' regulator has not yet been made public. It has been contemplating a listing since as early as 2018.

Popular among retail investors, Robinhood counted more than 13 million users at the end of 2020. It has been credited with helping enable the trading frenzy that sent GameStop stock skyrocketing this year.

The trading platform scored an $11.7 billion valuation at a funding round late last year. But secondary shares have given the company a valuation of as much as $40 billion, according to Bloomberg Intelligence analyst David Ritter.

Three new independent directors joined Robinhood's board earlier this month. The addition of its first female director, Paula Loop, helps it meet a requirement by underwriter Goldman Sachs that all companies seeking to go public must have at least one diverse board member.

Last month, the company rolled out a service that allows users to buy into IPOs alongside institutions and wealthier investors - including into its own listing.

Robinhood declined to comment about its plans for July.

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