Robinhood Markets Inc. (NASDAQ:HOOD) shares are jumping Monday. The company debuted its IPO Access service for UK customers, who can now apply for shares of new U.S. listings with no commission. Here’s what you should know.
- Robinhood Markets shares are climbing with conviction. What’s behind HOOD gains?
Robinhood Stock Rises After UK IPO Access Launch
IPO Access is Robinhood’s tool for requesting shares in a company’s initial public offering, or IPO, before the stock starts trading. Under the new service, UK clients can apply for stakes in newly listed U.S. companies at the price set for the offering, before the first trade happens, and Robinhood takes no commission.
Robinhood calls the UK a seasoned, busy retail market where early access to deals has mostly belonged to wealthy individuals and big institutions. To change that, it has partnered with a British offering-platform provider so everyday customers can join eligible deals. Rivals, Robinhood says, charge to execute orders or reserve primary listings for institutions and the wealthy.
Robinhood UK President Jordan Sinclair said the U.S. version “levelled the playing field for retail investors.” Sinclair added that Robinhood wants Britain’s retail investors to reach the newest wave of innovative companies as they list.
HOOD Shares Are Climbing
HOOD Price Action: Robinhood shares were up 4.12% at $84.24 at the time of publication on Monday, according to Benzinga Pro.
Image: ShutterStockies/Shutterstock
