Robinhood aims for a 35 billion valuation on the stock market

Robinhood aims for a 35 billion valuation on the stock market

The GameStop case app will land on Nasdaq to raise $ 2.3 billion. Born to "democratize finance", it will make its founders billionaires

(Photo by JOHANNES EISELE / AFP via Getty Images) A ​​35 billion dollar market valuation: this is the goal Robinhood, the platform for trading in the app, which will land on the Nasdaq lists by the end of next week and was valued at 11.7 billion dollars ten months ago. The transaction involves the sale of 55 million shares to raise up to $ 2.3 billion, in a price range between $ 38 and $ 42 each. The company made a 129% jump in revenues in the second quarter, year over year (estimate is between $ 546-574 million) but will close at a loss of between $ 537 and 487 million, after a first quarter of a loss of 1. , 4 billion dollars. 20-35% of the shares in the initial public offering will be reserved for retail clients.

Founded in April 2013 by two former Stanford physics students, Vlad Tenev (34) and Baiju Bhatt (36) with the mission to "democratize finance for all", in the cultural climate following the 2008 financial crisis and the Occupy Wall Street movement, the Menlo Park-based company in eight years has become the favorite of amateur investors in the United States with the action-meme mania. A fluctuating phenomenon that could be reflected in the quality of the cohorts of users of the same app (which grew from 18 million to 22.5 in the first six months), not all as regular in increasing deposits or in trading frequency, as Robinhood seems to admit in an updated document submitted to the SEC (the American stock exchange control authority).

The trading activity on the platform would be slowing down "especially in cryptocurrencies", from which the platform derives 17% of revenues. This is while bitcoin dropped below $ 30,000 on Monday and the entire industry burned $ 100 billion in losses.

When the company goes public, the two co-founders will sell shares for $ 50 million each and at the end they will have an 8% stake each, two-thirds of the votes and personal wealth in securities of $ 2.5-2.8 billion. That's not all: the board of directors has agreed an incentive plan for the two managers. Upon reaching certain targets (120-300 dollars of listing) in the next eight years Tenev would be rewarded with 22.2 million restricted shares and Bhatt with 13.2 million shares. That would give them an additional $ 4.7 and $ 2.8 billion, respectively.

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Cryptocurrencies Digital business Finance Fintech globalData.fldTopic = "Cryptocurrencies, Digital business, Finance , Fintech "

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