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Robinhood files for IPO

Controversial stock trading app Robinhood has filed paperwork with the Securities and Exchange Commission for an initial public offering.

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Robinhood files for IPO

Editorial

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

The company has been at the centre of a battle between activist retail investors and hedge funds shorting stock in companies such as GameStop and AMC Entertainment.

Robinhood temporarily stopped users from buying dozens of stocks that day traders who use the WallStreetBets subreddit had targeted in a short squeeze assault.

This led to probes by regulatory authorities and the filing of around 46 putative class actions and three individual lawsuits.

The firm was also forced to raise $2.4 billion in convertible debt to cover collateral requirements with clearing houses during the surge in trading.

Robinhood signaled its intention to go public on the Nasdaq earlier this month, although it is not yet clear whether the firm will opt for a traditional IPO or a direct listing.

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