Robinhood Markets Inc., the popular securities-trading app, filed paperwork with the Securities and Exchange Commission for what’s sure to be one of the year’s most eagerly awaited initial public offerings.
Robinhood announced the filing, which it made confidentially, in a statement Tuesday. As is customary, the company didn’t disclose any of the details in the filing.
A pioneer in easy, commission-free trading, Robinhood has been widely expected to stage an IPO soon. The filing, which a person familiar with the matter said was made Monday, puts the company on track to start trading publicly by the end of the second quarter, a timetable it outlined to investors upon seeking a swift infusion of capital earlier this year.
The eight-year-old firm was forced to pursue the funds when a surge of activity on its platform—driven by ferocious buying of so-called meme stocks like GameStop Corp. —caused the clearinghouse that handles Robinhood’s trades to demand it put up billions to cover potential losses.
Robinhood ultimately raised $3.4 billion, mostly from existing investors. An IPO would enable the company to raise additional capital to serve as an added cushion and fund growth.