(Reuters) -Robinhood Markets Inc on Thursday unveiled a new platform that will give retail investors the opportunity to buy shares in initial public o

Robinhood to allow users to buy into IPOs, ahead of its own market debut

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2021-05-21 23:00:05

(Reuters) -Robinhood Markets Inc on Thursday unveiled a new platform that will give retail investors the opportunity to buy shares in initial public offerings, something that has long been the exclusive domain of Wall Street funds.

The popular online brokerage startup, which is preparing to make public its own IPO paperwork in the coming weeks, is rolling out the investing platform in phases for users of its trading app, a step in its quest to "democratize" finance.

Reuters was first to report plans for the new product, called IPO Access, in March. Sources have also told Reuters that Robinhood will set aside some of its own shares, expected to be floated in a blockbuster debut, for sale on the platform.

"Most IPO shares typically go to institutions or wealthier investors. With IPO Access, everyday investors at Robinhood will have the chance to get in at the IPO price," Robinhood said in a blog post.

Robinhood said the new platform will be available to all customers, without any account limit restrictions. It plans to list a number of upcoming IPOs for customers.