One of the most talked-about stock brokerages is about to list itself on the stock market. Following media reports Tuesday that stated Robinhood has filed confidentially for an initial public offering (IPO), the company confirmed the speculation in a post on its official blog.
In that post, Robinhood said that it has not yet set the price range, nor the number of shares that will be sold in the offering. As for the timing, the company only said that it "is expected to take place after the [Securities and Exchange Commission] completes its review process, subject to market and other conditions."
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According to Bloomberg, which initially broke the story, "a person familiar with the matter" said Robinhood might list as soon as late in Q2 (i.e., by the end of June). The news agency added that its sources say the tech-heavy Nasdaq is the company's listing venue of choice.
Robinhood continues to be the standard-bearer among brokerages focused on youthful traders. With a robust Millennial customer base, it has very attractive demographics and operates in a middle-man industry that can be extremely profitable. These factors should make it an extremely hot stock for many right out of the gate when and if the company launches that IPO.
While Robinhood is on the way up for the most part as a company, it has had its stumbles. Most notably, it found itself in need of emergency funding when many of its customers joined the rush to buy GameStop (GME +1.35%) shares following that stock's contrarian, internet-fueled surge in popularity earlier this year. Investor interest in Robinhood stock, then, will likely be tempered by the memory of the GameStop crisis, as there are sure to be lingering doubts about its management of such situations.
