Robinhood submits paperwork t0 SEC for initial public offering

The famous trading app has filed a draught registration statement on Form S-1 with the Securities and Exchange Commission.

Robinhood Markets Inc., a famous trading app that has recently extended its cryptocurrency service, has filed paperwork to go public with the United States Securities and Exchange Commission, or SEC.

The company announced on Tuesday that it had sent a confidential draught registration statement on Form S-1 to the SEC in connection with its planned public offering of common stock. Form S-1 allows businesses to have more comprehensive details about how capital proceeds will be used, as well as a short prospectus on the proposed defence.

Although Robinhood did not mention a date for the IPO, it did announce that one will be sought “after the SEC considers its approval procedure, subject to business and other conditions.”

For months, there has been speculation about a Robinhood IPO, following reports that the firm has assembled a team of advisors to help it navigate the listing process. CEO and co-founder Vlad Tenev told CNBC in October 2020 that he was “not in a hurry” to press for a public listing because the firm was well financed.

Since the corporation agreed to suspend trade of GameStop earlier this year, public perception of Robinhood deteriorated – and the IPO process could have been stalled. According to an anonymous survey conducted in January through the Blind networking site, 83 percent of 8,750 checked finance professionals claimed Robinhood had “screwed the IPO.”

In January and February 2021, Robinhood added 6 million new cryptocurrency users, which was 15 times more than the overall number for the entire year of 2020. The company has revealed plans to extend its crypto offerings to allow for crypto asset deposits and withdrawals.

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