Robinhood Sells Shares in IPO at $38 a Share Before Going Public

American financial services company Robinhood has raised nearly $2 billion, selling 52.4 million shares in its IPO at $38 a piece.

Goldman Sachs and JPMorgan Chase are the lead investment banks on the deal. Underwriters will have an option to buy an additional 5.5 million shares.

The company is making its debut on the NASDAQ on Thursday and will be trading under the ticker symbol HOOD.

According to second quarter data, the company has roughly 22.5 million users of its popular trading app that has attracted many young and first-time investors. This number is up from 18 million in the first quarter. Revenue during the first quarter had astronomically soared to $522 million from $128 million in the year ago quarter.

Ahead of its Nasdaq debut, the company priced shares at the low end of the $38 and $42 range.

The Robinhood app offers equity, cryptocurrency and options trading, as well as cash management accounts. It experienced record trading levels during the pandemic.

The company was last valued in the private markets at $11.7 billion in September.

In its updated prospectus, Robinhood has projected second quarter revenue of $546 million to $574 million, up from $244 million in the second quarter of 2020. Revenue jumped 309% in the first quarter to $522 million from $128 million a year prior.

The company also however expects to swing to a net loss of $487 million to $537 million in the second quarter after turning a profit in the same quarter last year.

Options trading accounts for about 38% of revenue while equities and crypto are 25% and 17% of revenues, respectively.

CNBC has previously noted that co-founder Vlad Tenev, who serves as Robinhood’s CEO, could see his net worth more than double after the app goes public.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.