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Wednesday, March 23: Robinhood filed a confidential registration statement with the US Securities and Exchange Commission, indicating its plans to go public.
Robinhood is a popular trading app that offers commission-free stocks and ETFs. With its approachable interface and intuitive design, it caters to new investors looking to execute their first trades.
This commission-free trading platform may be planning an IPO as soon as this month. Bloomberg reported March 3 that the online broker is preparing papers ahead of filing for a March IPO. The company reportedly filed a confidential registration statement on March 23.
Some shares might be sold directly to users, the report said.
Here’s what we know and how investors can prepare.
What we know about the Robinhood IPO
The popular trading app has confidentially filed a registration statement with the US Securities and Exchange Commission, reports suggest, solidifying rumours that Robinhood plans to go public. Goldman Sachs will helm the deal and the company could be worth more than US$20 billion, according to Reuters.
In its September 2020 funding round, Robinhood raised US$460 million and was valued at US$11.7 billion. The Bloomberg report suggested the value could go much higher, up to US$30 billion.
We'll continue to track this story and update this page with information as it becomes available.
How to buy shares in Robinhood when it goes public
Once Robinhood goes public, you’ll need a brokerage account with access to the US stock market in order to invest. Consider opening a brokerage account today so you're ready as soon as the stock hits the market.
- Compare share trading platforms. If you're a beginner, look for a platform with low commissions, expert ratings and investment tools to track your portfolio. Narrow down top brands with our comparison table.
- Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and bank information. Fund your account with a bank transfer, credit card or debit card.
- Search for Robinhood. Find the stock by name or ticker symbol. Research its history to confirm it's a solid investment against your financial goals.
- Purchase now or later. Buy immediately with a market order or use a limit order to delay your purchase until Robinhood reaches your desired price. To spread out your purchase, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
- Decide on how many to buy. Weigh your budget against a diversified portfolio that can minimise risk through the market's ups and downs. You may be able to buy a fractional share of Robinhood, depending on your broker.
- Check in on your investment. Congratulations, you own a part of Robinhood. Optimise your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.
How do similar companies perform?
It's impossible to predict how any stock will perform — and IPOs can be particularly volatile. But evaluating the performance of companies like Robinhood can be useful in determining how the market is performing and whether now is a good time to invest in this industry.
Select a company to learn more about what they do and how their stock performs, including market capitalisation, the price-to-earnings (P/E) ratio, price/earnings-to-growth (PEG) ratio and dividend yield. While this list includes a selection of the most well-known and popular stocks, it doesn't include every stock available.
Compare share trading platforms to buy stock
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