Initial public offerings are in the spotlight this week thanks to Airbnb (NASDAQ:ABNB) and DoorDash (NYSE:DASH). However, news today suggests that an even more exciting IPO could be coming in 2021. What is that IPO? Well, after great speculation, rumor has it that Robinhood is working with Goldman Sachs (NYSE:GS) on a deal. So what else do you need to know about a potential Robinhood IPO?
To start, what is the latest set of rumors? Essentially, people familiar with Robinhood have more confirmation that a Robinhood IPO is coming in 2021. This is because the company has chosen to work with Goldman Sachs to lead its IPO prep.
Additionally, this news comes with an update to the Robinhood valuation. After its last funding round, the company behind the popular trading platform had a value of about $11.7 billion. Now, Reuters suggests the true valuation is above $20 billion. That is certainly capturing investor attention today!
Importantly, this is not the first time that investors have speculated about a Robinhood IPO. Earlier in November, Bloomberg reported that the fintech leader was working to find advisors for a deal. This was unsurprising, especially because of the rapid growth in popularity in the Robinhood trading platform.
The Bottom Line on a Robinhood IPO
Right now, there is a lot that we do not know about the Robinhood IPO. When will it come? According to the Reuters report, likely in 2021. However, the sources familiar with the company did caution that the timing of the market debut would change along with market conditions. Right now, everything is red hot when it comes to new offerings. You can see evidence of that in DoorDash and Airbnb, as well as massive post-IPO moves in companies like Palantir (NYSE:PLTR). Will Robinhood be able to ride that same wave?
Additionally, we have no idea what the price range of the Robinhood IPO will be. However, knowing that the company has a valuation as high as $20 billion should excite investors. Keep an eye out for a U.S. Securities and Exchange Commission filing, ad get ready to learn more about Robinhood stock.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.