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.”