Robinhood Markets Inc., the popular securities trading app, filed paperwork with the Securities and Exchange Commission for what is sure to be one of the most highly anticipated IPOs of the year.
Robinhood announced the filing in a statement Tuesday. As usual, the company has not disclosed any of the details in the application.
Robinhood, a pioneer of convenient, commission-free trading, is widely expected to launch an IPO soon. The filing, which a person familiar with the matter said was made on Monday, puts the company on track to start trading publicly by the end of the second quarter, a timeframe it outlined to investors after taking a rapid capital injection earlier this year. had requested.
The eight-year-old company was forced to chase the funds when a spate of activity on its platform – driven by the savage buying of so-called meme stocks like GameStop Corp. – caused the clearinghouse that handles Robinhood’s transactions to set up billions. to cover possible losses.
Robinhood eventually raised $ 3.4 billion, mostly from existing investors. An IPO would enable the company to raise additional capital to act as an additional buffer and finance growth.