Robinhood Postpones IPO to July 2021

09-06-2021

In March, Internet brokerage Robinhood announced plans for an IPO after filing with the US Securities Commission. The company was going to go public at the end of June. The broker now plans to hold an IPO after July 4, according to Bloomberg.

The publication suggests that Robinhood executives will be waiting for the return of potential investors, who usually leave to rest on the occasion of Independence Day. At the same time, the updated date for entering the exchange is not final, the broker can change plans.

In March, it was not known exactly how many shares would be issued and what their price would be. According to sources, the broker preferred the NASDAQ exchange as a trading platform. Reuters reports that Goldman Sachs is preparing the company for a listing.

Experts suggest that the broker made the decision to enter the stock exchange after a sharp increase in the number of clients. The attention of investors to the company was attracted by the events of the winter of 2021 related to the “acceleration” of quotes of “meme” shares by shortlists. This list includes sensational this year GameStop, BlackBerry, Nokia, and others. A sharp jump in quotations for securities of listed companies forced Robinhood to apply restrictions on trading in such shares. After that, some traders filed a lawsuit against the broker for depriving them of potential profits.

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