Financial services company Robinhood is seeking a market value of up to $35 billion in its approaching initial public offering (IPO). The share price will sit between $38 to $42 per share, with the IPO marking the public coronation of the controversial financial services platform.
According to the SEC filing on Monday, Tenev and co-founder Baiju Bhatt will each sell shares worth approximately $50 million in the offering. Post-offering, both Tenev and Bhatt will each own around 8% of the company’s stock, and will collectively own roughly two-thirds of voting shares.
After the offering, Tenev and Bhatt will likely each have stock worth between $2.5 billion and $2.8 billion, based on the estimate of $38 to $42 a share. The Robinhood founders could earn billions more in the coming years due to a generous compensation package. Back in May, an incentive plan was approved by the company’s board that would allow Tenev up to 22.2 million restricted stock units across the coming eight years if the stock reaches set targets. The incentive plan would also see Bhatt receive 13.2 million shares.
If Robinhood stock does meet the stock targets, starting at $120 and rising to $300, then Tenev would have stock valued at approximately $4.7 billion, whilst Bhatt’s shares would come in at around $2.8 billion.
