dpa/GNA – Trading app Robinhood on Tuesday said it has filed confidential paperwork to pursue an initial public offering (IPO) and take the company public.
Robinhood Markets, Inc announced that it confidentially submitted a draft registration statement with the Securities and Exchange Commission (SEC) relating to the proposed initial public offering of its common stock.
“The number of shares to be offered and the price range for the proposed offering have not yet been determined,” the statement on a company blog read.
The initial public offering is expected to take place after the SEC completes its review process, subject to market and other conditions.
The financial services provider was founded in Menlo Park, California in 2013 and there has long been speculation about an IPO.
Robinhood is seen as a pioneer of a new, younger generation of investors in the US financial market.
The company has made it its mission to open up the stock market to people who have no access to inherited assets and resources.
Critics, however, accuse Robinhood of acting more like a gambling provider than a serious financial service provider with its easy-to-use app that is popular with younger investors.
Robinhood operates a business model that lures customers with no fee, while the company receives money from large Wall Street corporations to broker their transactions, Charlie Munger, the deputy of US star investor Warren Buffett, noted recently.
Munger claimed that Robinhood encourages people to take considerable risks, which the company rejected as “disappointing and elitist.”