(Reuters) -Robinhood Markets Inc, the online brokerage at the center of Wall Street’s recent retail trading frenzy, on Thursday disclosed paperwork for its flotation, setting the stage for one of the most anticipated initial public offerings of the year.
The Menlo Park, California-based company, hit with a $70 million fine by regulators this week for systemic failures and providing false and misleading information, reported a 245% jump in revenue last year, according to the filing, as it fed on the surge in trading by ordinary Americans stuck at home.
Revenue for the year ended Dec. 31, 2020 rose to $959 million, the company said. Net income was $7 million, compared to a loss of $107 million a year earlier.
In December, Reuters reported that the app had picked Goldman Sachs Group Inc to lead preparations for an IPO, which could value it at more than $20 billion.
Robinhood’s move to go public comes months after the company found itself at the center of a confrontation between a new generation of retail investors and Wall Street hedge funds in late January.
The company was founded in 2013 by Stanford University roommates Vlad Tenev and Baiju Bhatt. Its platform allows users to make unlimited commission-free trades in stocks, exchange-traded funds, options and cryptocurrencies.
Robinhood, which plans to list on the Nasdaq, had in March confidentially submitted plans to regulators for a U.S. IPO.
(Reporting by Anirban Sen and Noor Zainab Hussain in Bengaluru; Editing by Sriraj Kalluvila)
