Robinhood Aims to Allow Users Access New Stock Listings at IPO Price

Robinhood Markets Inc(Robinhood) is building a platform that allows its users to snap up new IPOs at the offering price, according to people familiar with the matter.

The move would be striking, because it offers Robinhood traders with the opportunity to buy shares of new listings alongside Wall Street big funds. Since shares often trade higher when the IPO begins, big funds that get allocations in the IPO have an advantage.The average first-day trading pop on U.S. listings of businesses in 2020 was 36%, according to data provider Dealogic.

Recently, Robinhood has confidentially submitted a draft registration statement on Form S-1 with the Securities and Exchange Commission.

Robinhood plans to carve out a chunk of its shares on offer in its IPO for its 13 million users, and to use technology it is building to administer this part of the offering.
However, Robinhood didn't officially publish how much stock it might sell. No final decision has been made on how it will allocate.