Robinhood files to go public
By Allison Morrow, CNN Business
Robinhood, a day after incurring a record-breaking fine from Wall Street’s industry regulator, filed paperwork for its hotly anticipated initial public offering.
The company plans to list its shares on the Nasdaq stock exchange under the symbol HOOD, according to its filing with the Securities and Exchange Commission. As is typical for the initial IPO filing, Robinhood didn’t yet indicate a target valuation or date for its public debut.
The IPO plan follows a series of regulatory headaches for the free-trading app. On Wednesday, Robinhood was ordere to pay about $70 million for “systemic supervisory failures” and hurting investors by giving them “false or misleading information.” That’s the largest penalty ever imposed by Wall Street’s self-regulating body, the Financial Industrial Regulatory Authority, or FINRA.
FINRA’s sanctions on Robinhood focus on large-scale system outages that hit the platform in March 2020 as well as the options trading procedures at the heart of a lawsuit filed by the family of a 20-year-old Robinhood trader who died by suicide last year.
This story is developing and will be updated.
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