Robinhood seeks up to $35 bln valuation in mega U.S. IPO

Robinhood Markets Inc is targeting a valuation of up to $35 billion in its initial public offering in the United States, the company revealed in a Monday filing, setting the stage for one of the most highly anticipated stock market listings this year…

The listing plans come just months after the online brokerage found itself at the center of a confrontation between a new generation of retail investors and Wall Street hedge funds in late January.

Robinhood was aiming for an IPO valuation of up to $40 billion, Reuters had previously reported. read more

About 55 million shares are being offered in the IPO, with shares expected to be priced between $38 and $42, the company said. This would raise over $2.3 billion if priced at the top of the range.

Nearly 2.63 million of those shares are being offered by the company’s founders and chief financial officer, the filing showed. Proceeds from those will not go to Robinhood.

Salesforce Ventures, the investment arm of software provider Inc (CRM.N), is looking to purchase up to $150 million worth of Class A common stock at the IPO price, the filing showed.

As revealed by Reuters in March, Robinhood plans to reserve some of its offering for users of the trading app. Between 20% and 35% of shares will be allocated to users, dependent on demand from customers and other investors, the filing said.

In a separate statement, Robinhood said it would host a public event on July 24 to present its IPO plans and answer questions from potential investors. This is akin to traditional roadshows which companies and their advisers host with professional investment firms in the run-up to a share offering.

Robinhood was founded in 2013 by Stanford University roommates Vlad Tenev and Baiju Bhatt. They will hold a majority of the voting power after the offering, the filing showed, with Bhatt having…

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