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Robinhood looks to raise $2.3bn in upcoming IPO

Robinhood looks to raise $2.3bn in upcoming IPO

Controversial stock trading app Robinhood is seeking to raise up to $2.3 billion at a valuation of as much as $35 billion in its upcoming IPO.

In an SEC filing, the firm says it will look to sell around 55 million shares for between $38 and $42 apiece. It will list on the Nasdaq under the ticker symbol 'HOOD'.

The $35 billion valuation is up from $11.7 billion at Robinhood's Series G funding round in September.

In the filing, Robinhood says it has 22.5 million funded accounts as of the second quarter, up from 18 million in the first quarter.

Second quarter revenue is estimated to be between $546 million and $574 million, up from $244 million in Q2 2020. However, the firm expects to record a net loss of up to $537 million.

While the IPO valuation reflects Robinhood's reputation as one of fintech's biggest success stories, the app has also been dogged by a series of controversies.

Last month it was slapped with a $57 million fine by the Finra, which also ordered it to pay approximately $12.6 million in restitution, plus interest, to thousands of "harmed customers".

In December it was hit with a $65 million fine by the SEC for misleading customers about payment for order flow practices that cost traders over £34 million in lost gains.

Then in February, it emerged that US regulators had made inquiries about the trading restrictions the app put on stocks such as GameStop during the Reddit-led rallies earlier this year.

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