Plans for U.S. financial services firm Robinhood Markets Inc. to go public this month have been hampered in recent weeks due to an exchange with regulators over its prospectus.
According to Bloomberg, Robinhood has come under scrutiny by the United States Securities and Exchange Commission (SEC) over its growing cryptocurrency activity. While a list could arrive this summer, the popular trading app’s plans could also slide in the fall, the report added.
People familiar with the matter told Bloomberg that Robinhood Market plans to release its financial details as soon as possible and make them public as soon as the SEC review is complete.
Robinhood said it confidentially filed an initial public offering (IPO) in March. It was targeting June for its IPO, but that plan was then postponed to July, Bloomberg reported.
Previously, Bloomberg had reported exclusively on Robinhood’s plan to go public in July, after her plans for a June listing slipped.
On June 24, Robinhood Markets sent a note encouraging users not to sell stocks within the first 30 days of offers. They also warned that investors who sell or âflipâ their IPO shares could be barred from participating in future IPO trades for two months.
âWe will not prevent you from selling the stocks you get through the IPO Access program. However, if you sell IPO shares within 30 days of the IPO, this is considered a âturnaroundâ and you will not be able to participate in IPOs for 60 days, âthe company said on its website.
The cryptocurrency exchange option was rolled out by Robinhood in 2018. As of today, customers can trade cryptocurrencies like Bitcoin, Ethereum, Dogecoin. About half of Robinhood’s clients are first-time investors and the company is often seen as an entry point for newbies to cryptocurrency markets, which can be very volatile at times.
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