Robinhood Markets has selected Goldman Sachs to take the lead on preparing the stock-trading app for an initial public offering as soon as next year, an effort that could value the company at more than $20 billion.
Citing people familiar with the matter, Reuters reported the IPO would come in 2021, cautioning that the exact timing and valuation will be subject to market conditions.
Robinhood was valued at $11.7 billion in its last private fundraising round in September.
The IPO talk comes amid a slew of red-hot listings by technology companies in 2020, including DoorDash (DASH) – Get Report, which is set to go public on Wednesday at $102 a share, putting more than $3 billion in its coffers and giving it a fully diluted valuation of $38.7 billion.
It also follows other big-tech IPOs, including data warehouse company Snowflake (SNOW) – Get Report, data analytics firm Palantir Technologies (PLTR) – Get Report, virtual building video game giant Roblox and ContextLogic, the parent of online retailer Wish. Home-rental platform Airbnb is expected to price its shares Wednesday evening.
Airbnb on Monday boosted the price range of its initial public offering to between $56 and $60 a share, a new range that will net the company more than $3 billion and give it a valuation of as much as $42 billion.
Even without DoorDash and Airbnb, more than $140 billion has been raised in IPOs on U.S. exchanges so far this year, well above the previous full-year record set in the dot-com daze of 1999, according to data compiled by Bloomberg.
Menlo Park, California-based Robinhood has to date raised about $2 billion from private investors, according to PitchBook. Its backers include venture capital firms Andreessen Horowitz, Sequoia and Ribbit Capital, as well as rapper Snoop Dogg and actor Jared Leto.
Robinhood was founded in 2013 by Baiju Bhatt and Vladimir Tenev, with the aim of using technology to level the playing field in trading. Popular among younger traders, particularly millennials, its platform allows users to make unlimited commission-free trades in stocks, exchange-traded funds, options and cryptocurrencies.
Robinhood earlier this year withdrew public access to its trading data, preventing users from seeing what their fellow investors were buying and selling instantaneously. The company said it was considering bringing back the capability.