Robinhood Markets Inc., a popular trading application that recently expanded its cryptocurrency business, published paperwork with the United States Securities and Exchange Commission (SEC).
Company confirmed On Tuesday, she confidentially submitted a draft registration statement on Form S-1 to the SEC regarding the proposed public offering of its common stock. Form S-1 requires provide companies with more detailed information on the intended use of capital gains, as well as a short prospectus on the proposed collateral.
While Robinhood did not specify when the IPO would take place, it confirmed that the public offering would take place “after the SEC considered its review process, market subject and other conditions.”
Speculation about the Robinhood IPO has been circulating for months amid reports that the company has built a team of consultants to guide it through the listing process. In October 2020, CNBC CEO and co-founder Vlad Tenev said this “He was not in a hurry” to push through the public list because the company was well funded.
Public opinion about Robinhood deteriorated earlier this year – and may stop the IPO process – after the company decided to stop trading GameStop. An anonymous survey conducted in January through the Blind networking forum found that among 8,750 certified financial professionals, 83% believe Robinhood has “confused its IPO.”
Robinhood added 6 million new cryptocurrency users in January and February 2021, which was 15 times the average for the full year 2020. The company announced plans to expand its crypto services to allow deposits and withdrawals for cryptocurrency.