The trading app said it will reserve up to 35% of shares for its app users at the pre-trading range of $38 to $42 a pop.
Robinhood Markets Inc. jumped a whopping 82% on Wednesday after a wave of individual investors joined the likes of Cathie Wood to pile on the zero-fee trading platform.
The stock traded at a record $85 at 9:46 a.m. in New York, extending gains for a fourth-straight session and triggering at least two trading halts. The frenzied share buying pushed the company’s market value to $65 billion from $29.1 billion at its debut on Nasdaq last week.
Retail investors’ participation took off in the past couple of sessions after a lukewarm reception. They bought a net $19.4 million worth of Robinhood shares on Tuesday to make it the sixth-most-purchased stock and 11th-most-traded security on retail platforms, according to data compiled by Vanda Securities Pte.
Total retail volume on Tuesday surged about 10-fold from the previous day, the data show. On Thursday morning 28 million shares exchanged hands.
The retail investors trading boost came alongside Ark Investment Management’s move to increase stake in the company. Ark Fintech Innovation ETF bought 89,622 Robinhood shares in the previous session as they surged 24% to close at $46.80 apiece.
(Updates share movement and context in first, second paragraphs.)
–With assistance from Abhishek Vishnoi.