Robinhood Targets Bigger Role in IPO Underwriting

Robinhood is looking to build a bigger role in the US investment banking market after securing its first formal IPO underwriting assignment, as the retail-focused brokerage seeks to have a greater say in how shares are allocated to individual investors.

The company has joined the underwriting syndicate for smart-ring maker Oura’s planned IPO, appearing alongside major Wall Street firms including Goldman Sachs, Morgan Stanley and JPMorgan. While Robinhood is listed last among the 18 underwriters, the appointment gives it a direct role in the process for the first time.

Speaking to Yahoo Finance, Robinhood CEO Vlad Tenev said the company wants to use the position to represent retail investors during IPOs. “We want to do more,” Tenev said, adding that the role should allow Robinhood to be “in the room in a big way” when allocations are discussed.

Robinhood has previously offered IPO access to its customers as a selling group member, distributing shares allocated by the banks leading each deal. Becoming an underwriter changes that position by giving the company a greater role in determining how shares reach investors.

Tenev said Robinhood intends to “be disruptive in the space,” arguing that the existing IPO process gives issuers limited visibility into investor demand and how pricing could affect that demand. The company believes its large retail customer base and data on investor behavior could give it a different perspective from traditional investment banks.

The Oura deal comes as Robinhood continues to expand beyond its core brokerage business. The company has moved into banking, prediction markets and private-market investing, while deposits have grown to more than $3 billion.

Tenev declined to say whether Robinhood could take an underwriting role in a major upcoming IPO such as Anthropic. “Obviously, I can’t make any promises,” he said.