Robinhood Markets Inc. plans to reveal the filing for its initial public offering as soon as next week, as the trading app targets late June for its market debut, according to people familiar with the matter.
While Robinhood’s IPO plans are advanced, the timing and details could change, said the people, who asked not to be identified discussing private information. A representative for Robinhood declined to comment.
The filing will give potential investors their first comprehensive look at Robinhood’s financials and the risks associated with the stock. Robinhood submitted confidential documents to the Securities and Exchange Commission in March, a process that allows the regulator to weigh in on any changes needed before making them widely available.
A securities filing in May revealed that the company’s payment for order flow — its largest source of revenue — more than tripled in the first quarter to $331 million as it became immensely popular with young investors amid the meme-stock frenzy.
Regulators have said that Robinhood’s platform encourages a game-like approach to trading, particularly among inexperienced retail traders. Gary Gensler, the new SEC chairman, said at a congressional hearing on May 6 that many regulations were written before recent technologies changed the way trading happens.
“We need to evaluate our rules, and we may find that we need to freshen up our rule set,” Gensler said.
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