The popular trading app, Robinhood Markets Inc., recently expanded its crypto business to cater to more users within its customer base. Reports have emerged that the company has submitted a draft registration statement on Form S-1 with the United States Securities and Exchange Commission (SEC), to go public.
Robinhood confirmed on March 23 that it had confidentially submitted a comprehensive draft registration statement with the SEC about the proposed public offering of its common stock. Form S-1 needs firms to offer more detailed information on the planned use of capital proceeds, and a brief prospectus on the projected security.
While Robinhood did not say when the IPO would happen, it confirmed that a public offering would be relentlessly pursued:
“after the SEC contemplates its review process, subject o market and other conditions.”
Speculations have come up about a Robinhood IPO for many months amid news that the firm had already lined up a team of advisers to guide it in the entire listing process.
Last October, the CEO and co-founder Vlad Tenev told CNBC that he was not in a hurry to push for a public listing since his company was well funded. The public opinion of the company soured earlier this year after Robinhood decided to stop trading GameStop. That incident might have stalled the IPO process.
Another anonymous survey done in January through the Blind networking forum discovered that, among the 8,750 authenticated finance professionals, 83% thought that Robinhood had “screwed its IPO.”
The company added 6 million new crypto users in January and February 2021. That number is 15 times higher than the average figure in all of 2021. Robinhood has announced its plans to expand its crypto services to support deposits and withdrawals for cryptocurrency and digital assets.