Robinhood Meme stock raised USD 21 billion in IPO

As per the trusted sources of information, the owners of the trading app, Robinhood Markets Inc., which has emerged as the go-to destination for the retail investors that have speculated on this year’s meme stock trading frenzy raised the amount of USD 2.1 billion in its Initial public offering in this week.

The company was looking forward to capitalize on the fascination of the individual investors with the cryptocurrencies and stocks like GameStop Corp, which have been watching wild swings after it became a matter of trading speculation on several social media applications such as Reddit. There was a huge rise in the number of users on the Robinhood.

After the IPO, the company was valued at USD 31.8 billion which makes it a greater function of the revenue than several of the traditional competitors such as the Charles Schwab Corp. However, the offering was rated at the bottom of what the company had expected to happen.

Several investors stayed on side majorly due to the concerns about frothy valuation of the company, along with the risk of regulators that are cracking down to the business of Robinhood and even after the anger with the company’s trading curb imposition when the meme stock had flared up during the end of January in the present year.The company stated about selling more than 55 million shares in the company’s IPO at USD 38 per piece, which is a low end of its price range that went from USD 38 to USD 42.