Robinhood, the 'GameStop Incident', to List on Nasdaq in Q2

Source: CNBC

[Asia Economy Reporter Yujin Cho] Robinhood, the US stock trading app that gained worldwide attention due to the GameStop stock surge incident, is set to debut on the stock market through Nasdaq as early as the second quarter of this year.

According to sources cited by the US economic media CNBC, Robinhood is expected to submit its listing application to the US Securities and Exchange Commission (SEC) following the S-1 form for its initial public offering (IPO).

It usually takes about 1 to 2 months from submitting the application to the SEC until trading begins. If Robinhood submits the listing application within this month, it is expected to debut on the stock market within the second quarter of this year.

Robinhood is reportedly considering a direct listing rather than a merger with a SPAC. Goldman Sachs has been designated as the lead underwriter for the listing.

Founded in 2013, Robinhood rapidly grew by gaining overwhelming support among the millennial generation with its commission-free trading policy. According to JMP Securities, influenced by the COVID-19 work-from-home boom, Robinhood secured 3 million new users in January alone.

Robinhood was at the center of the GameStop incident, where individual investors collectively bought stocks to counter hedge funds' short selling. Robinhood sparked controversy by effectively restricting individual investors' purchases without legal grounds, an act considered unfair. As social controversy grew, CEO Vlad Tenev appeared at a US House hearing.

CNBC reported that these controversies have not affected Robinhood's ability to attract investment. Currently, Robinhood's major investors include New York's D1 Partners, Sequoia, Kleiner Perkins, and GV, a venture capital firm under Google.

This content was produced with the assistance of AI translation services.