Robinhood Markets Inc. was cautiously received on its stock market debut by private investors, the very group of customers that the popular trading app woos for long-term growth.
According to data from Vanda Securities Pte. That pales in comparison to the IPOs of other high profile companies like the Chinese ride-hailing giant Didi Global Inc. and the world’s leading cryptocurrency exchange Coinbase Global Inc.
Didi attracted $ 69 million from amateur investors on its first day of trading, while Coinbase bagged $ 57.4 million.
The lack of retail enthusiasm was a key factor in Robinhood’s disappointing debut Thursday, when shares closed 8.4% below their share price. It also highlights how quickly sentiment can shift towards such online brokerages that are trying to democratize the financial markets by attracting a new generation of amateur and young investors.
Despite the lack of support from retail investors, the company received some high-profile support from Cathie Wood’s flagship ARK Innovation Exchange Traded Fund, which bought nearly 1.3 million shares of Robinhood on Thursday at Robinhood’s closing price of $ 34.82, adding value to the ETF raised a stake of $ 45 million.
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