California-based fintech startup Robinhood has just set its initial share price, which will trade under the ticker HOOD. According to the company, Robinhood will offer investors 55 million shares of Class A common shares at a price of $38 per share.
The shares are expected to begin trading today on the NASDAQ. At the same time, of the 55 million, about 52.3 million shares will be offered by Robinhood itself and approximately 2.6 million shares by existing shareholders. The share placement will run through August 2. The underwriters for the deal will be Goldman Sachs and JPMorgan.
Robinhood plans to spend the funds raised to fund tax obligations and expand its workforce.
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It ha recently been known that the online broker has reached an agreement with the US Financial Industry Regulatory Authority (FINRA) to pay $70 million to settle claims against the company. The regulator said in a statement the firm must pay the fine for the "systemic supervisory failures and significant harm suffered by millions of customers."
$57 million of this amount will be paid as a fine to FINRA, while the service will pay another $12.6 million as compensation to customers.