Robinhood $HOOD joins Fintech 50 Index at rank 19 based on a market cap around $32 billion

Fintech 50 Index is 50 publicly traded Fintech stocks ranked by market cap and has been incubated within Daily Fintech, the leading site for Fintech, Crypto and Insurtech trends & analysis.

Robinhood went for a traditional IPO (Initial Public Offering) vs the DPO (Direct Public Offering) chosen by Coinbase in their 14 April public stock debut, but with a relaxation of traditional six-month lockup rules – employees will be allowed to sell 15% of their Robinhood holdings immediately, along with another 15% after three months.

My fictional account of behind closed doors conversation between the HOOD board and the investment banker underwriters goes like this:

HOOD: “we might go the DPO route and just pay you a flat fee and bypass all those lockup rules”.

Banker: “IPO has much better price performance. And we can raise capital that HOOD really needs since the WallStreetBets problems. Our fees will be a rounding error.”

HOOD: “OK but what about those lockup rules?”

Banker: “we can offer employees an early partial exit”

HOOD: “our early investors want that too”

Banker: “that would crash the price.

HOOD: “OK, agreed”.

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