WSJ News Exclusive | Robinhood IPO Prices at $38 a Share

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Robinhood has priced its IPO at $38 share, people familiar with the matter say, a lower-than-expected price for its highly-anticipated public debut

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Robinhood Markets Inc. priced its initial public offering at $38 a share, at the low end of expectations, after the popular trading platform met tepid demand for its highly anticipated debut.

The price chosen by the company and its underwriters is at the bottom of the range of $38 to $42 a share they had been targeting. It pegs Robinhood’s valuation at about $32 billion, far higher than the nearly $12 billion it fetched in a funding round a year ago but below the lofty prior expectations of some investors and bankers.

Robinhood has said it and some executives would sell 55 million shares, so the offering should yield more than $2 billion. The price reflects both hesitation on the part of some investors, who bristled at what they saw as the high valuation Robinhood sought, as well as a conscious decision by the company and its underwriters to be conservative in order to help set up a successful first-day of trading, according to people familiar with the matter.

Next up for Robinhood is its trading debut, which the company will make Thursday on the Nasdaq stock exchange under the symbol HOOD. It is a markedly different debut than the traditional IPO. While most companies only allocate a small amount of stock to individual investors at the time of their IPOs, Robinhood sold a big chunk of its IPO shares to individual investors over its

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I thought the 35% shares reserved for their customers was for them to buy at the pre-ipo price…. So before it goes public, at the same price it sold shares to the ipo investors … boudreau_c Could you enlighten me 😂

This is just hilarious. Robinhood will not make it through the next market correction because its entire customer base is going to get nailed.

Title is hype scammy. Only a naive investor is going to dig it.

VCNetworkCo I thought they priced around $52.

JQT_CoinLinked It will tank. This stock is going to get rolled over by the r/wsb group. Give it some time. Not a good investment IMO.

Desperate much? Not interested. AMC is the stock I like.

Is 38$ the opening price tomorrow or is 38$ the price at which they sell their shares to investors and the small % of customers who get to buy the stock before the opening?

It deserves to be a penny stock, for the retail trader!

Criminal

I would say this thing is going to blow up in their face, but the founders will get rich. It’s the inexperienced retail investors, their own customers, that will get screwed

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