Facing $70M in fines from regulators, Robinhood files for IPO
The U.S. Financial Industry Regulatory Authority delivered its biggest financial penalty against the trading app on Wednesday, and Robinhood still reportedly faces scrutiny from the SEC regarding its business practices.
Stock and cryptocurrency trading app Robinhood has filed an application with the U.S. Securities and Exchange Commission for an initial public offering.
In a Form S-1 registration statement filed Thursday with the SEC, Robinhood said it intended to move forward with an initial public offering its Class A common stock. If approved, the company said it plans to trade using the ticker “HOOD” on the Nasdaq and raise $100 million in the debut.
The trading app had said it was planning to go public last month but postponed the offering to July. The firm has been the subject of an investigation from the U.S. Financial Industry Regulatory Authority, or FINRA, and is reportedly under scrutiny from the SEC as well.
Related: Coinbase expects direct listing on April 14
The IPO announcement comes just one day after FINRA ordered Robinhood to pay roughly $70 million in fines related to its alleged “systemic supervisory failures” and restitution to customers it had allegedly caused “widespread and significant harm.”
This story is developing and will be updated.
