Robinhood Sets IPO Share Price at $38

The crypto-friendly platform Robinhood set the initial public offering price at $38 per share. The offering will raise $1.89 billion, valuing the company at about $32 billion.

Trading of the shares is expected to begin on Thursday, July 29, 2021, on Nasdaq under the ticker HOOD.

The IPO will consist of 55 million Class A common shares, of which 52.375 million are owned by Robinhood and 2.625 million by existing investors. The offering is expected to close on August 2.

Underwriters will have a 30-day option to purchase up to an additional 5.5 million shares at the IPO price.

Goldman Sachs and JPMorgan are acting as joint lead underwriters for the stock offering. Barclays, Citigroup and Wells Fargo Securities are also bookrunners for the platform’s IPO.

“Robinhood plans to use the net proceeds to strengthen working capital, fund capital expenditures, finance expected tax obligations related to stock-based compensation, and for general corporate purposes, including hiring new personnel, expanding customer-support operations, and meeting general capital needs,” the statement said.

During the run-up to the IPO, Robinhood chief Vlad Tenev called cryptocurrencies the linchpin of the company’s future development.

In the first three months of the year, the number of users of the company’s mobile app for trading digital assets rose from 1.7 million to 9.5 million.

In March, Tenev announced the addition of a crypto wallet. According to outlets, the move will provide access to assets and DeFi services.

In May, Chief Operating Officer Christine Brown, who heads the company’s cryptocurrency division, said the app would offer the ability to withdraw digital assets to external wallets.

Earlier reports said Robinhood delayed a planned June listing as it studied the SEC cryptocurrency business.