(Bloomberg) — Robinhood Markets Inc. has priced its initial public offering at the low end of its marketed range, according to people familiar with the matter.
The shares are being sold in the IPO for $38 each, said the people, who asked not to be identified because the information wasn’t public yet.
Shares of the company at the center of this year’s meme stock frenzy had been offered for $38 to $42 each. At $38 a share, the IPO would raise about $2.1 billion based on the 55 million shares the company and some of its investors had planned to sell.
That would give the company a market value of just under $32 billion based on the outstanding shares listed in its filings. Accounting for employee stock options and similar holdings, Robinhood’s fully diluted value would be closer to $33 billion. That falls short of a valuation of $35 billion expected by some earlier.
The price is a signal that investors weren’t clamoring to buy its stock the way they are with some of the year’s hottest offerings. Still, setting a lower price could allow more room for the “first-day pop” expected with major IPOs.
A representative for Robinhood declined to comment. The IPO price was reported earlier by the Wall Street Journal.
Goldman Sachs Group Inc. and JPMorgan Chase & Co. are leading the IPO, with the shares set to begin trading Thursday on the Nasdaq Stock Market under the symbol HOOD.
(Updates with market value in fourth paragraph)
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