The CFO of Robinhood says it was ready to go public
The stock opened at $38 per share and closed at $34.82 per share, or 8% underwater, on its first day of trading. The company fell early before recovering to breakeven in the afternoon. It was not the debut that some had expected.
Money, markets, and startups are explored by the Exchange. You can get The Exchange newsletter on Saturdays. We aren't going to do a full week of mega-round discussions or noodle on banned Chinese IPOs.
The Exchange had a chat with Robinhood's CFO about his company's IPO and went over a few reasonable guesses as to why we're not wondering how much money was left on the table by pricing its public offering lower than it closed on. Let's not be mean about it. Yesterday was the time for jokes on the social network.
We will put thinking caps on this morning. We wanted to know if this was the right time for Robinhood to go public. No public company CEO or CFO will say that they are going public because they think that they can defend their most recent private valuation thanks to current market conditions.
When it comes to IPO day, executives tend to divert the question to how their public offering is a milestone in their company's long-term trajectory. It is important for leaders to downplay the importance of an IPO during an arch- capitalist event. Warnick didn't say that Robinhood went public because the IPO market has rewarded consumer tech companies with strong debuts.
He didn't say that with tech shares near all-time highs and a taste for high-growth concerns, the company was likely to enter a market that would be willing to price it at a valuation that it found attractive."