Robinhood IPO: Robinhood seeks extra financial institution credit score forward of deliberate IPO

by akoloy

By Matthew Monks and Michelle F. Davis

Robinhood Markets Inc. is searching for to spice up its financial institution loans forward of an preliminary public providing, in line with folks acquainted with the matter.

The firm, which pitches its buying and selling platform to novice traders, has been holding talks with lenders about including to its revolving credit score strains, mentioned the folks, who requested to not be recognized as a result of the matter isn’t public. It isn’t clear how a lot the corporate is searching for.

Companies usually safe a credit score line earlier than going public and it will be sure that Robinhood has a robust capital and liquidity place, one of many folks mentioned.

The transfer would come a number of months after the agency raised debt and $3.4 billion in fairness to adjust to a margin name from the trade’s clearinghouse, a consequence of untamed swings in shares together with online game retailer GameStop Corp.

A consultant for Menlo Park, California-based Robinhood declined to remark.

The firm’s credit score strains embody a $600 million revolver from banks together with JPMorgan Chase & Co., Goldman Sachs Group Inc. and Morgan Stanley, in line with knowledge compiled by Bloomberg.

Robinhood mentioned final month that it had filed confidentially for what might be one of the vital intently watched IPOs of the yr.

While the corporate’s easy-to-use buying and selling app grew to become immensely widespread with younger folks throughout the pandemic, it has drawn scrutiny from regulators and politicians for its position within the so-called meme-stock frenzy that included GameStop.

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