Robinhood to plan confidential IPO filing as soon as March
Robinhood Markets Inc., the trading platform has held talks in the past week with underwriters about moving forward with a filing within weeks, said the people, who asked to not be identified because the matter isn’t public. No final decision has been made and the timing could change, the people said.
Robinhood exploded in popularity during the pandemic as homebound young people turned to its trading app to make money and pass the time. The company, which has been targeting a 2021 IPO since at least last year, faced a cash crunch when it ran into regulatory trouble three weeks ago.
Robinhood had to draw down its credit lines and raise $3.4 billion from its backers to post more collateral with the Depository Trust & Clearing Corp., the industry’s clearinghouse. The DTCC wanted members to post more cash to ensure they could clear trades, given wild swings in stocks including video game retailer GameStop and movie theater chain AMC Entertainment Holdings Inc.