Robinhood’s IPO Becomes One of The Worst in the US
The initial public offering or IPO of Robinhood has become one of the worst in the history of the US markets after the stocks of the company fell 8.37% below the IPO initial price.
Bloomberg has reported that this is the worst debut among 51 companies that attracted a similar amount of funds to Robinhood.
Notably, the previous record of worst IPO was held by broker MF Global, whose shares lost 8.2% of their value during the first trading session. Another company with a really bad debut on the stock exchange was Uber, whose shares lost 7.6% during the first 24 hours of trading.
Robinhood’s shares, which are trading under the ticker HOOD, closed the trading session at $34.82, 8.37% below its initial price, set at $38. As a result, the capitalization of the company amounted to $29 billion, $3 billion below the expected $32 billion market capitalization had the shares reached the initial $38.
Despite the numbers, Robinhood co-founder Vladimir Tenev has said:
“We are building a long-term business. You should ignore these short-term fluctuations.”