Online broker Robinhood has filed with the US Securities and Exchange Commission an application to conduct an initial public offering and has disclosed its financial data for the first time.
According to the document filed with the regulator, in 2020, the company's net profit rose to $7.45 million, while revenue increased by 245% to $958.8 million. In 2019, the broker suffered a loss of $106.6 million, while revenues rose to $277.5 million.
During the first quarter of 2021, Robinhood lost $1.4 billion due to the increase in GameStop's stock prices in January. Revenue during the first quarter of the year rose to $522 million, up 309% from a year earlier. According to its own data, the amount of assets under management at Robinhood during the year rose from $19.2 billion to $80 billion, while the number of monthly active users reached 17.7 million.
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Robinhood intends to list between 20% and 35% of its shares on the US NASDAQ under the ticker HOOD. The company plans to raise $100 million during its IPO, however, this amount could increase following the release of the terms of the share sale. The IPO organizers include Goldman Sachs, J.P. Morgan Securities, Barclays Capital and Citigroup Global Markets.
Robinhood filed for a confidential initial public offering in March 2021.
Robinhood has previously agreed with the US Financial Industry Regulatory Authority (FINRA) to pay $70 million to settle claims against the company.