Robinhood IPO pricing at $38 a share

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Robinhood Markets priced its initial public offering at $38 a share, at the low end of expectations, after the popular trading platform met tepid demand on its highly anticipated debut.

The price chosen by the company and its subsidiaries is at the bottom of the range from $38 to $42 per share they were targeting. It pegs Robinhood’s valuation at about $32 billion, well above the nearly $12 billion it got in a funding round a year ago but lower than the previous high expectations of some investors and bankers.

Robinhood said it and some executives will sell 55 million shares, so the offering should fetch more than $2 billion.

The price reflects both reluctance on the part of some investors, who were concerned about what they saw as the high valuation sought by Robinhood, as well as a conscious decision by the company and its insurers to be conservative in order to help create its first trading day success, according to people familiar with the matter. on command.

Next up for Robinhood is its debut in trading, which the company will make Thursday on the Nasdaq Stock Exchange under the symbol HOOD. It’s a markedly different emergence from a traditional IPO. While most companies only allocate a small amount of shares to retail investors at the time of IPOs, Robinhood has sold a large portion of the IPO shares to retail investors via its new platform that allows users to access IPOs before trading begins.

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