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Robinhood’s website on a laptop

Tiffany Hagler Gear / Bloomberg

Robinhood Markets, the commission-free investment app, has set the terms for its much-anticipated IPO.

Robinhood said on Monday that he offer 55 million shares at $ 38 to $ 42 each. It will be traded under the symbol HOOD on the Nasdaq market.

At $ 42 a share, Robinhood could be valued at $ 35 billion.

Founded in 2013, Robinhood offers commission-free transactions on stocks and other investments. The Menlo Park, Calif., Company sends client orders to market makers such as Citadel Securities, Virtu Americas, and G1X Execution Services. It employed 1,281 people in 2020.

Robinhood competes with brokers like Charles Schwab (SCHW), TD Ameritrade (owned by Schwab), Fidelity Investments, E * Trade, which was acquired by Morgan Stanley (MS) and Interactive Brokers Group (IBKR). These companies have also eliminated online trading commissions.

The trading start-up is trying to make IPOs accessible to retail investors. Robinhood customers, who participate in its Access IPO, can purchase shares of certain offerings. The company is setting aside up to 35% of its shares in the IPO for sale to Robinhood clients through its IPO access feature, according to the prospectus.

In addition to Robinhood shares, clients also have the option to purchase shares in Outbrain, the adtech company, and Duolingo, the language learning website and app, is now available on IPO Access, the Robinhood site said. It is not known how many shares of each company are available to Robinhood clients.

The prospectus lists 17 investment banks working on the transaction. Goldman Sachs and JP Morgan are the main underwriters in the transaction.

Write to Luisa Beltran at luisa.beltran@dowjones.com



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