Trading platform Robinhood that advocates for “financial democratization”, is preparing to be listed on the Nasdaq

Robinhood, tranzactii financiare pixabay,com

The American platform Robinhood, which allows transactions with zero commissions, officially submitted a file to the US regulators on Thursday to be listed on Wall Street, writes Le Figaro.

The group, which did not specify a timetable or the amount it hopes to obtain from this operation, shows in the submitted documents that its turnover increased by 245% in 2020, to 959 million dollars.

According to Reuters, the company’s valuation could reach over 40 billion dollars by listing.

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In the first quarter of this year, turnover increased by 309%. At the end of March, the app had 18 million users with a total of $ 80 billion in assets, up from $ 7.2 million a year ago.

Founded in 2013, the company’s mission is to “democratize finance” and offers an easy-to-use tool for anyone who wants to invest money in the financial markets. Already in vogue before the pandemic, the app took off during the quarantine period, mainly thanks to the millenials generation who have the time and money to speculate.

Robinhood has taken full advantage since the beginning of the year of speculative frenzy related to actions such as the GameStop video game store chain or the AMC movie theater chain. Its methods have been criticized by the authorities, who have accused the company of presenting sometimes complex financial bets as a simple game, in order to attract young and inexperienced users. Robinhood on Wednesday agreed to pay a $ 70 million fine to financial regulator Finra for causing damage to “millions of customers who received false or misleading information from the company and millions of customers who were victims of systemic penalties in March 2020 ”.

The company, which has about 2,100 employees, wants to be listed on the Nasdaq under the symbol “HOOD” and to reserve between 20% and 35% of the shares on the market for its users.

In 2020, the group made a net profit of $ 7 million but in the first quarter of this year suffered a net loss of $ 1.4 billion due to accounting adjustments of $ 3.5 billion. Operating profit was $ 115 million during this period.

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