Robinhood Markets Inc., the popular securities trading application, has filed documents with the Securities and Exchange Commission for what will surely be one of the most anticipated initial public offerings of the year.
Robinhood announced the filing, which it did confidentially, in a statement Tuesday. As usual, the company did not disclose any of the details in the registration.
A pioneer in easy trading without commissions, Robinhood was expected to hold an IPO soon. The filing, which a person familiar with the matter said was made on Monday, puts the company on track to begin public trading by the end of the second quarter, a schedule it presented to investors looking for a quick infusion of capital earlier this year.
The eight-year-old company was forced to pursue funds when an increase in activity on its platform – driven by the fierce purchase of so-called meme shares such as GameStop Corp. – caused the clearing house that handles Robinhood’s transactions to demand to raise billions to cover potential losses.
Robinhood eventually raised $ 3.4 billion, mostly from existing investors. An IPO would allow the company to raise additional capital to serve as an additional cushion and fundraiser.