Key Sentence:
- According to the SEC’s amendment statement on Monday, stock trading app Robinhood targets $35-Dollar billions in initial public offering – meaning the two founders are poised to add to their billions of fortune.
The IPO is expected to make Robinhood billionaire founders Vlad Tenev, 34, and Baiju Bhat, 36, even more prosperous. According to the updated statement, Tenev owns 54.3 million Class B shares, while Bhatt owns 80.2 million shares. In addition, the two founders plan to sell about 1.25 million Class A shares as part of the deal.
At $40 per share, the average point of the proposed offering, Tenev’s stake in Robinhood would be worth about $2.2 billion and Bhatt’s $3.2 billion, according to Forbes. The mobile-friendly discount broker, a pioneer in uncompromising stock trading, plans to raise $2.3 billion on its upcoming stock market debut, which could take place next week. According to an updated prospectus, the factory intends to sell a total of 55 million shares in the $38 to $42 per share range, trading under the ticker “HOOD,” according to an updated prospectus.
Considering the various awards and limited partnership shares, upon completion of the IPO, Tenev and Bhatt will each hold a 7.9% stake in the company and, as requested, own all Class B shares, which have ten votes per share. Thus, in total, Tenev will possess 26.2% of the voting rights while Bhatt has 39%.
Robinhood’s last private market estimate was $11.7 billion following a fundraising round in September 2020. That estimate put Tenev and Bhat billionaires at $1 billion, according to Forbes.