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Robinhood IPO Date News! PLUS Robinhood IPO Access Poll Results & Answers to Some of Your Questions - YouTube
Channel: Healthy, Wealthy, and Wise
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so we got some news from bloomberg聽
on robinhood's plans for its own ipo聽聽
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today i thought i'd share that news but also look聽
at how successful the first ipo access with figs聽聽
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stocks was and answer some questions that came聽
up on the last video had plus we had a little聽聽
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poll and just to see who actually got shared聽
so i'll give you some of the results from that聽聽
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but first welcome back i've been so super busy as聽
of late that i had to step away from the channel聽聽
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last week but but one of the things i did was a聽
little home renovation project that i had heard聽聽
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about and i tried it and well has nothing to do聽
with investing it has a lot to do with saving a聽聽
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lot of money so think about making a video on that聽
and give you a chance to see it maybe a little聽聽
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different side of me and see what i'm good at and聽
maybe what i'm not so good at but anyways enough聽聽
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about me let's talk about robin hood now before we聽
talk about robin hood's first foray into offering聽聽
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ipos with figs let's talk about some reporting聽
from bloomberg on a robinhood ipo that we've聽聽
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been expecting and we know it's coming because聽
as we've talked about before on the channel聽聽
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they filed confidentially in march of course this聽
is from reporting of people who don't want to be聽聽
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identified so keep that in mind this is far from聽
official but after some initial expectations that聽聽
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robinhood's ipo could come in june according to聽
bloomberg in their article it looks like robin聽聽
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hood is planned to hold its ipo in july sometime聽
after the 4th and they want to do it because聽聽
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they want to get people all back from the holiday聽
and ready to to invest so so as far as valuation聽聽
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and we've talked about this before whether we聽
talked about it on the six big upcoming ipos聽聽
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for 2021 or when i made that case for robin hood聽
having an ipo this year it looks like valuation聽聽
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is coming in at least 40 billion dollars based on聽
some of the trading in the private markets now i聽聽
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know a lot of people out there got turned off from聽
robin hood based on the gamestop fiasco in january聽聽
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which led to a congressional hearing which you聽
know sort of made people wondering if the ipo聽聽
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was going to happen but um and what would聽
happen actually though was that robinhood聽聽
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just kept getting more business more more users聽
came on in fact in according to cnbc they added聽聽
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like three million users in january alone that聽
month and then with the crypto trading um you聽聽
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know which has been obviously big it's been a boom聽
and bust thing over the last couple of months but聽聽
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they've added about three million users a month聽
and during that first quarter so they've added聽聽
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over nine million users um you know as far as the聽
numbers that we have right now just for 2021 in聽聽
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trading crypto so at this point there's a lot聽
of unofficial numbers and reporting out there聽聽
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so i really can't wait to see the public filing聽
you know when i get that i'll definitely dig聽聽
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through it and i'll share the details with you聽
so if you haven't subscribed to the channel yet聽聽
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you might want to do that so you don't miss that聽
information now moving on the second thing i want聽聽
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to talk about was robinhood's ipo access and i聽
had planned to actually talk about this last week聽聽
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after they had their first offering with figs聽
but as i said i got busy so i'm going to add聽聽
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it to this video but the intriguing part to me聽
with this is that the product or the service聽聽
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you know really is intriguing to me because聽
of one of the most common questions i get ever聽聽
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since i started covering ipos on the channel was聽
how to get ipo shares now today i want to talk聽聽
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about how successful that the retail investors聽
were with robinhood's first ipo offering was聽聽
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and also to answer some of those questions that聽
i've gotten based on that last video i put out聽聽
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so to get everybody up to speed you know if you're聽
new here in late march robinhood announced that聽聽
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they were looking at offering ipos to their聽
own customers regardless of account balance聽聽
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which is a big thing because i've shared you know聽
many of the comments and live streams and whatnot聽聽
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a lot of times there are ways for retail investors聽
to get into ipos but you usually have to have聽聽
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a lot of money you have a lot of money in your聽
account and when i say like a lot of money like i聽聽
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mean a lot of money and so so really the everyday聽
retail investor didn't really have a chance聽聽
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and that is nothing is more frustrating when聽
you know you see institutional investors get聽聽
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the prices of shares at one price and the next聽
day the stocks trading double but you you were聽聽
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shut out on that but before they announced this聽
which i believe i did a video on that day and聽聽
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it was the same day so far i announced that they聽
were going to offer ipo shares to their customers聽聽
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there had already been reports that robinhood聽
was going to bring in its or allow its own users聽聽
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and customers to participate in their own ipo聽
so we already knew this was likely to happen聽聽
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but again when in march when they made the聽
announcement that they were going to offer ipos聽聽
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beyond just their own company it's a big deal聽
and then on may 20th they announced that they聽聽
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would officially call this ipo access now what聽
was interesting was on that same day figs who's聽聽
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a healthcare clothing company you know ready聽
to go public they had put out an amended filing聽聽
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that they anticipated up to one percent of the聽
shares of their class a common stock offered聽聽
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would be offered to retail investors to robinhood聽
through its online brokerage platform now if that聽聽
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meant was that fixed was robinhood's first ipo聽
offering and when i say that i don't know if聽聽
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that really makes sense because it's really聽
saying initial public offering offering but聽聽
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regardless um so anyways i put a video on it and聽
got some comments from many of you who were in on聽聽
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the ipo or at least tried to get in on it and so聽
it's a quick refresher fig stock was priced at 22聽聽
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for the ipo um so that was the ipo price it closed聽
the first day up over 30 percent so this was what聽聽
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everybody wanted you know you have that access聽
to that initial pop however as i was reading the聽聽
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comments there's a lot of people that thought聽
that they were had shares and then they didn't聽聽
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and so i got a lot of comments in that previous聽
video of frustration from orders being canceled聽聽
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now while robinhood makes it clear that there's no聽
guarantees of getting allotments that you'll get聽聽
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all of which you requested um it definitely聽
seemed like there was a lot of negativity聽聽
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after the the trading started and a lot of people聽
were shut out on the ipos and you know robin hood聽聽
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will obviously never be able to offer every聽
ipo out there and it's probably going to be聽聽
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even harder to get shares once you're talking聽
about companies there's a lot of interest in聽聽
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you think last year snowflake you know everybody聽
and their mother went in on that ipo price聽聽
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um the odds you probably would have gotten or聽
were probably low but of course when you think聽聽
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you are able to participate and then of course聽
you don't even if you're understanding it's random聽聽
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and maybe you didn't understand ceram but now of聽
course robinhood has had their share of issues聽聽
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but this really wasn't one of them because聽
whether it's robinhood or any other聽聽
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you know place you can get ipo shares there's聽
never guarantees of getting allotments聽聽
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but the problem is is here it seemed like the聽
majority of the comments were negative and that聽聽
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of course is going to be just another thing聽
that leaves a bad taste in people's mouths so聽聽
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anyways what i was wondering was how many people聽
got shares you know did you you requested an聽聽
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allotment and that you got some so i put up a poll聽
and this was a very unofficial poll um because聽聽
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the results don't meet any scientific standards of聽
statistical significance um we had like i think 35聽聽
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people responded and so if you know anything about聽
statistics uh this study was very underpowered but聽聽
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to share the numbers with you guys um we had 20聽
of those people got shares and 80 of people didn't聽聽
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so i personally i think that that's probably聽
a stronger number than i would have expected聽聽
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um however you know i wasn't sure how many people聽
would actually be interested in getting figs stock聽聽
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and i know that there's some people that probably聽
aren't interested in the company they just wanted聽聽
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to be in an ipo which i get but you know a聽
different company i maybe if it was that snowflake聽聽
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of last year or you know somebody like that聽
perhaps that the percentage would have been a lot聽聽
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lower because again there's only so many shares聽
available and the more people that won them you're聽聽
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going to disappoint some people but again i think聽
it's still the opportunity is to get in ipos where聽聽
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before you just didn't have that opportunity and聽
again just basically having a random chance to get聽聽
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it because you don't have to have any certain聽
criteria you have to meet as far as again how聽聽
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many uh how much money you have in your account聽
but anyways there were some questions that came聽聽
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up in the comments and i thought you know i would聽
not pull anybody's name out because some of these聽聽
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were multiple questions from different people聽
but i thought it'd be helpful just to answer聽聽
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them so for anybody interested so the first聽
question is why were shares priced at 22.聽聽
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well as you guys know we talked usually we put聽
out a video before the ipo happens and the ipo聽聽
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itself is actually the day before trading it's聽
not the day the trading begins and so usually聽聽
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going into the ipo there's a range where there's聽
expectations of where the shares will be priced at聽聽
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and what happens is you have all the people聽
involved you have the underwriters there聽聽
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you have institutional banks and based on interest聽
is how the shares will be priced so you look at聽聽
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the figs stock being priced at 22 it's because聽
the people that look into this they felt that聽聽
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was a fair value and typically you know the ipo聽
price is probably a little lower um than where聽聽
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we'll expected to trade you know not looking聽
at last year where everything went crazy but聽聽
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um but typically the prices you know they look at聽
all the number they get evaluation and then the聽聽
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ipo price tends to be a little bit less than that聽
so how the price got was not because you put it聽聽
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some people said they might have put 22 dollars in聽
it wasn't priced at that because you thought that聽聽
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was your request and when you requested it with聽
the range you wanted it just was what the ipo was聽聽
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priced at so based on the amount of shares they聽
have the cell and again how much interest there is聽聽
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the institutional investors the underwriters the聽
company they all came together and basically 22聽聽
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dollars is what the institutional investors were聽
willing to pay for the shares so that's how that聽聽
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came about another question was do i have to聽
wait to sell my shares so robinhood talks about聽聽
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this on their website and it talks about their聽
flipping policy and what it says is that robinhood聽聽
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won't prevent you from selling shares you get聽
through the ipo access program however if you聽聽
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sell those ipo shares within 30 days of the ipo is聽
considered flipping and you'll be restricted from聽聽
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participating in ipos for 60 days now one of the聽
concerns from robinhood is that if there is a lot聽聽
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of flipping that that could lead to them getting聽
less access to ipos in the future from different聽聽
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companies and sofi who i mentioned earlier was聽
also looking to offer ipos to its customers聽聽
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i'm noted this concern as well so you just have to聽
keep in mind that companies that are issuing stock聽聽
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and their underwriters they really don't want that聽
stock being flipped a lot it just causes a lot of聽聽
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volatility and so that's why historically聽
they've gone to the institutional investors聽聽
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so it is what it is it's not saying you聽
can't do it but um again based on robinhood's聽聽
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you know guidance is if you do it um you're gonna聽
be shut out for the next 60 days and then the last聽聽
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question i just want to answer and probably the聽
biggest one this is from the 80 of the people聽聽
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that didn't get shares is why didn't i get the ipo聽
shares i requested now that could be a few reasons聽聽
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for this um the big reason probably for figs of聽
stock was that just what enough shares for the聽聽
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request that they had and you know being that聽
this was the first ipo access you know offering聽聽
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there probably was a lot more interest in it聽
than you know than you might have expected聽聽
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otherwise for this company uh so basically what聽
robin hood says is that they randomly select聽聽
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um and who get the opportunity to get the shares聽
as again there's just no guarantee um and they聽聽
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do say it's random which again is generally a good聽
thing now of course if you have a lot of money you聽聽
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can request to get the shares you know through聽
one of the big companies that do offer them but聽聽
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again keep in mind that you know as they it's figs聽
where i'm hosing get one percent of those shares聽聽
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um so again if it's based on customer demand and聽
the more demand and those limited amount of shares聽聽
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you know you're gonna get shut out now another聽
thing and this is again according to robinhood聽聽
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directly is if the price of the stock were to聽
end up outside the price range by more than聽聽
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20 percent whether up or down um you have聽
to then go out you then have to actively聽聽
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reconfirm whether or not you're still interested聽
in purchasing the stock of the new price聽聽
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so if you don't do that and you have a sort of a聽
time frame to do it they'll cancel your request so聽聽
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don't think this was an issue with the fig stock聽
but it's probably one in the future that could be聽聽
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an issue and if you have that question so anyways聽
a lot of this guidance is directly on robinhood's聽聽
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webpage so you can definitely check that out聽
as well so anyway just some information on聽聽
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robinhood and ipos and i know a lot of you have聽
interest in that particular watch this channel聽聽
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when it comes to investing we talk a lot about聽
ipos here and even though the channel was never聽聽
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meant to be just about ipos um you know so much聽
interest there that we've been talking about it聽聽
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although i know that interest is going down and i聽
i think part of it is because of the frustration聽聽
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with ipo performance after the fact so the uh聽
ability to be able to get ipo shares at ipo prices聽聽
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where people can do a little bit better i think聽
it is good um definitely good for retail investors聽聽
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and of course i know a lot of you use robinhood聽
and i know they've had their controversies but聽聽
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they really have really changed the game聽
for investing for retail investors so聽聽
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they're important and so we'll definitely there's聽
a lot of interest in there so we'll be following聽聽
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them through their ipo and again as i get the聽
public filing i'll share that information with聽聽
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you guys so at this point uh once again thanks for聽
coming back again sorry i wasn't on here last week聽聽
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so anyway if you haven't done it yet please like聽
the video it's really important for me to know聽聽
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you enjoy videos like this so i can keep making聽
them and also it really is important for youtube聽聽
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because um the more people like the video the聽
more likelihood they'll send it to more people聽聽
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and of course the more people that see it can join聽
our community and we can share more information聽聽
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with each other which is really what the channel聽
is all about so anyways i hope you have a good聽聽
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rest of your day and i hope to talk to you聽
guys soon thanks for sticking with me take care
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you
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