Robinhood shares jumped nearly 10 per cent, surpassing IPO price
Robinhood shares jumped nearly 10 per cent, surpassing IPO price
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More than the IPO price
Only 1.3% of Robinhood Markets Inc (NASDAQ:HOOD) users participated directly in the online trading app's IPO.
According to the publication, 301,573 customers of the online broker bought shares at an IPO price of $38 per share on the day it went public. Meanwhile, the company had more than 22 million funded accounts as of June 30.
Robinhood aims to increase retail investors' access to stock listings by providing a platform where users can buy shares at the IPO price, like big banks and investment houses. This can provide big returns on the day a company goes public if its shares rise strongly. Normally, access for 'individuals' to buy at such favourable terms is limited to institutional investors and their clients.
Robinhood was one of the first to sell shares at an IPO price to its customers, along with Duolingo (NASDAQ:DUOL) and Clear Secure (NYSE:YOU), which also recently went public.
While only 301,573 Robinhood customers took part in the IPO, it was Robinhood's best performance to date, with 12,602 Robinhood customers buying Duolingo at the IPO price last month and 78,250 customers taking part in the F45 Training (NYSE:FXLV) offering.
However, customers who bought Robinhood shares at the IPO price did not get the one-day boost they probably expected, as the shares fell 12% on the day the broker went public. Today, however, they were already on the plus side, as Robinhood's stock jumped 9.69%, above the $41 per share price.
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