Robinhood IPO review slowed at SEC
Robinhood Markets Inc. filed a filing for release this month, but the filing review process was slowed down by the SEC due to back-and-forth over its prospectus, Bloomberg Reports.
Initially, Robinhood filed for an IPO in March, but according to Bloomberg sources, the plan could slip into late summer or even fall.
According to sources familiar with the matter, this is specifically due to questions regarding Robinhood’s growing crypto trading activity.
Robinhood started its crypto business in 2018 and it has grown to now allow users to trade popular cryptocurrencies like Bitcoin, Ethereum, as well as “meme stocks” like Dogecoin.
According to the company, during the first quarter of 2021, 9.5 million customers traded on Robinhood Crypto.
Robinhood became popular with novice investors investing in virtual currencies during the COVID-19 pandemic and was a key part of the GameStop trading mania earlier this year.
Robinhood CEO Vlad Tenev was even called to testify before the House Financial Services Committee in February about Robinhood’s involvement in the frenzy.
Tenev told the committee that the business ultimately failed, but hoped to learn and improve from the experience.
The SEC is having a busy year for IPOs, which has created a backlog.
After a walk bloomberg reportagency staff said it might take 30 days to review the SPAC documents this year and expect to wait several weeks to hear the changes and amendments as well.
Robinhood has become one of Silicon Valley’s most valued private companies, says CNBC Article published last month. The company is said to be valued at around $ 11.7 billion.
This month, Robinhood named three new board members: Jon Rubinstein, Paula Loop and Robert Zoellick. The company also announced that the app will begin allowing clients to purchase IPOs, including its own.
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