Robinhood's IPO has become the worst in the history of US IPOs, Bloomberg has reported. The 12.2% drop in HOOD's share price at this time has put the online broker at the top of the list of worst US debuts on the stock exchanges.
HOOD.NASDAQ chart by EXANTE
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HOOD shares have now recovered from their peak decline and are currently trading at $34.82 (-8.37%). As a result, Robinhood's IPO has been even worse than that of MF Global Holdings, the previous worst record where the company's shares dropped by 8.2% during its IPO back in 2007.
HOOD's initial stock price was set at $38. For companies of Robinhood's size, this is the "lowest" starting price among US companies since Uber Technologies in May 2019, Bloomberg has reported. Then, Uber closed its debut session down 7.6%.
Robinhood plans to use the funds raised during its IPO to fund tax obligations and expand its employee base.