Robinhood is one of the most popular stocks and crypto-trading apps. Robinhood’s latest Initial Public offering (IPO) has helped the internet app to bag $32 billion. Despite the fact that Robinhood is valued lower than the estimated value, but still, the successful IPO will now provide the company to debut on the Nasdaq Stock Exchange in the coming week.
This news is a massive development and particularly celebrated by the crypto community. Crypto experts said that this could be the first indication that crypto and stock trading can go side by side. Robinhood’s official statement said the net sales of the stock will help the company to raise enough capital to spend on expenditures, hiring new crew, customers support services, and on some other operational areas.
According to a report published yesterday, Robinhood estimated its initial share price around $38 per Class A common stock share. However, the price has remained at the lower end of the $38-$42 per share price range, targeted by the company. The company’s initial plan was to offer a 5.5million shares to the public while eyeing on $1.89 billion raise.
Net income obtained from the sales will be spent on working capital, capital expenditures, funding tax obligations, hiring efforts, customer support services, among others. At the start of the month, Robinhood started offering its IPO to the app users, via the app. Some of the experts considered this really an immature and dangerous step. Robinhood famous for its zero-fee trading structure makes the app unique. However, the app has faced a couple of allegations raised against its image. Apart from these allegations, the app also facing some of the legal and political difficulties curbing from the result of the GameStop saga and restrictions to users, trading crypto.
The officials have assured the public that the app is working hard to rebrand its image by offering state of an art trading experience, which will also protect crypto users against price volatility and financial scams. In order to enhance its overall value proposition. The company is looking forward to hiring new technical staff and state of a art equipped customer support services team to address the issues of its users. Robinhood also announced to hire a former Google alumn to improve its product design.
Despite the successful IPO company is facing financial regulation issues. The company’s CEO Vlad Tenev rejected all the allegations from the regulatory authorities which have accused the CEO to ignore compliance issues. As of this writing, Robinhood is facing severe legal and financial issues and also received critic from netizens. So, the current IPO could be a game-changer for Robinhood. The IPO has created hope that finally crypto and stock traders can operate side by side, however, using the same platform.