By Dhirendra Tripathi
Investing.com – Robinhood (NASDAQ:HOOD) stock looked set to extend the previous session’s gains on Wednesday with the trading app rising 9.5% in premarket.
The stock had closed 24% higher Tuesday after it breached its IPO price of $38 for the first time since listing last Thursday.
After listing at its issue price, the stock had closed 8% lower on debut. The shares were offered in the $38-$42 range but were eventually issued at the lower end.
Besides the app’s popularity amongst casual and retail investors, the company’s initial public offering was a much-discussed event for other reasons as well.
No other company had previously reserved as many shares for its own customers.
The online brokerage sold as much as 25% of its IPO shares to 301,573 of its retail customers, representing about 1.3% of the platform’s 22.5 million funded accounts.
Cathie Wood’s ARK Invest purchased 1.3 million shares of the company on listing and topped that up with 1.85 million shares the following day.