Robinhood Is Seeking $35 Billion Valuation in Upcoming IPO

California-headquartered Robinhood has submitted its amended initial public offering (IPO) filing with the SEC, showing that the broker is seeking a market valuation of as much as $35 billion in its upcoming public listing.

The regulatory filing released on Monday shows that the brokerage firm will sell 55 million shares in the IPO, and each of its shares will be priced at a range between $38 and $42: the upper limit will put the market value of the company at $35 billion. The company is seeking to raise up to $2.3 billion with the IPO.

Robinhood has disrupted the US stock brokerage industry with its commission-free model. Its offerings include trading with stocks, Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term and stock options. The brokerage startup was last valued at $11.7 billion in a private equity round closed in August 2020.

Charles Schwab, which is one of America’s top brokerage platforms, has a current market capitalization of $130 billion, while Interactive Brokers is valued at $26 billion.

Strong Numbers

In addition, the latest filing revealed many other key business metrics of Robinhood. The broker is estimated to have 22.5 million funded accounts, which is a significant increase from 18 million in the first quarter of 2021.

Additionally, the brokerage is estimating that its revenue for the second quarter of 2021 to be between $546 million and $574 million. It generated a revenue of $522 million and $244 million in Q1 of 2021 and Q2 of 2020, respectively.

Meanwhile, Robinhood garnered a lot of controversies due to its business practices. The broker routes its clients' orders to principal trading firms in Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term for fees. It was fined $65 million last December by the SEC for non-disclosure of its business model and has faced another $70 million penalty recently for systemic supervisory failures.

Though Robinhood filed its initial IPO papers in March, it is not clear when it will make its market debut due to the regulatory penalties.