Robinhood Pursuing Nasdaq Listing... Estimated Corporate Value of 40 Trillion Won

[Image source=AP Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] Robinhood, a US online securities trading app pursuing a Nasdaq listing, is expected to be valued at up to $35 billion (approximately 40.3025 trillion KRW) through its initial public offering (IPO), CNBC reported on the 19th (local time).

According to the report, Robinhood presented a revised registration statement submitted to the US Securities and Exchange Commission (SEC), proposing an offering price range of $38 to $42 per share.

Robinhood plans to sell about 55 million shares through the IPO, and if the offering price is set at the upper end of the range, $42 per share, Robinhood's corporate valuation is expected to reach $35 billion.

Robinhood's IPO underwriters include more than ten global investment banks such as Goldman Sachs and JP Morgan. Robinhood plans to hold an online presentation for general investors on the 24th for this IPO. Robinhood has allocated 20-35% of the listed shares for subscription by its customers. Bloomberg reported that the Nasdaq listing is expected to take place on the 29th.

With this listing, Robinhood's co-founders Vlad Tenev (34), CEO, and Baiju Bhatt (36), Chief Creative Officer (CCO), are expected to become very wealthy.

Even applying the midpoint of the offering price range, CEO Tenev and CCO Bhatt hold Robinhood shares worth $2.5 billion and $2.8 billion respectively.

The two are Stanford University alumni who founded Robinhood in 2013.

Robinhood has expanded its customer base by emphasizing commission-free trading, and especially this year, the 'meme stock' craze including GameStop has attracted a large number of young investors.

Robinhood's active users reached 17.7 million in the first quarter of this year, doubling from 8.6 million a year ago.

Robinhood turned a profit last year with a net income of $7.45 million, and its net revenue reached $959 million. In 2019, it recorded $278 million in revenue with a loss of $107 million.

However, it has faced ongoing criticism due to frequent system outages and concerns about encouraging speculation. During the GameStop stock surge, which was seen as a 'short-selling war' between individual investors and hedge funds, Robinhood restricted purchases by individual investors and is under investigation by regulatory authorities.

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