Robinhood Markets Inc. set for IPO at $38 a share after the popular trading platform met lukewarm demand for its highly awaited debut, according to a WSJ report on Thursday.
- The price selected by the company and its underwriters are at the bottom of the targeted range of $38 to $42 per share.
- The conservative IPO price pegs Robinhood’s valuation at around $32 billion, higher than close to $12 billion it raised in a funding round a year ago, but below investors and bankers’ expectations.
- Robinhood revealed some executives would sell 55 million shares, an offer that would yield over $2 billion.
- The next step is the trading debut, which the company will make Thursday on the Nasdaq stock exchange under the symbol HOOD.
Unlike most companies, Robinhood sold a big chunk of its IPO shares to individual investors over its new platform that gives users access to IPOs before they start trading.