Robinhood Targets $ 35 Billion IPO
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Stock trading app Robinhood announced plans to raise up to $ 2.3 billion when it goes public, CNN reports . According to a modified prospectus, the stock could sell for between $ 38 and $ 42 per share, giving the company an estimated market value range of $ 27 to $ 35 billion. That would make Robinhood more valuable than most of the S&P 500 companies.
An IPO occurs when the company faces various legal and communication obstacles.
Robinhood's business structure faces scrutiny from regulators after retail investors trading on the platform caused price swings in stocks like GameStop earlier this year.
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Robinhood received a record fine last month on charges that misled investors and recently settled with the family of a trader who committed suicide after misinterpreting what he thought was a large debt on his account.
Critics also argue that the company's payment structure creates conflicts of interest.
The company also warns that a slowdown in cryptocurrency trading could affect its third-quarter revenue.
Robinhood, whose IPO could take place next week, plans to go public on the Nasdaq and trade under the ticker symbol HOOD.