Thursday, July 1: Robinhood filed publicly with the US Securities and Exchange Commission its intention to trade on the NASDAQ under the ticker symbol HOOD.
Wednesday, March 23: Robinhood filed a confidential registration statement with the US Securities and Exchange Commission, indicating its plans to go public.
Robinhood is a popular US trading app that offers commission-free stocks, ETFs and options trading.
On July 1, 2021, the company announced it had officially filed to list on Wall Street’s NASDAQ under the ticker symbol HOOD. It follows earlier reports of a confidential registration by the firm in March.
Also read: Alternatives to Robinhood in New Zealand
Here’s what we know and how investors can prepare.
What we know about the Robinhood IPO
The trading app disclosed a pre-IPO filing with the U.S. Securities and Exchange Commission on July 1, 2021, ending months of speculation.
Investment firms Goldman Sachs and JPMorgan are helming the deal, while Barclays, Citigroup and Wells Fargo are onboard to book-run the offer.
The company could be worth more than US$20 billion, according to Reuters. In its September 2020 funding round, Robinhood raised US$460 million and was valued at US$11.7 billion. A Bloomberg report suggested the value could go much higher, up to US$30 billion.
How to buy Pre-IPO stock from New Zealand
Unless you’ve got some top-tier connections to Wall Street brokers, it’s very difficult to access US pre-IPO stock from New Zealand.
There have been reports that pre-IPO Robinhood stock will be made available to customers through the app itself. In May, Robinhood mostly confirmed rumours by releasing a new feature that would allow users to apply for any pre-IPO stock made available to the broker.
However, because the Robinhood app is not available to customers in New Zealand, you’ll need to wait until HOOD stock begins trading publicly.
How to buy shares in Robinhood when it goes public
Once Robinhood goes public, you’ll need a brokerage account to invest. Consider opening a brokerage account today so you’re ready as soon as the stock hits the market.
- Compare share trading platforms. If you’re a beginner, look for a platform with low (or no) commission fees, good reviews and investment tools to track your portfolio. Narrow down top brands with our comparison table.
- Open and fund your trading account. Complete an application with your personal and financial details, like your ID (a New Zealand passport worked) and bank information. Fund your account with a bank transfer, credit card or debit card.
- Search for Robinhood Find the stock by name or ticker symbol. Research its history to confirm it’s a solid investment against your financial goals.
- Purchase now or later. Buy immediately with a market order or use a limit order to delay your purchase until Robinhood reaches your desired price. To spread out your purchase, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts. Some share offer an auto-invest feature which allows you to do this automatically.
- Decide on how many to buy. Weigh your budget against a diversified portfolio that can minimise risk through the market’s ups and downs. You may be able to buy a fractional share of Robinhood, depending on your trading platform.
- Check in on your investment. Optimise your portfolio by tracking how your stock — and the business as a whole — performs in the long term. You may be eligible for dividends and shareholder voting rights on directors and management decisions that can affect your stock.
Compare trading platforms that provide access US stocks
To buy shares, you’ll need to open a share trading account. Compare your options using the table below to find the best fit for you.
Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, CFDs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors. Trading CFDs and forex on leverage comes with a higher risk of losing money rapidly. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades.