Robinhood Joins IPO Underwriters for Smart Ring Maker Oura

Huo Xing Cai Jing reports that on September 8, according to The Wall Street Journal, smart ring manufacturer Oura listed Robinhood as an underwriter in its IPO filings, marking Robinhood’s first formal participation in an IPO underwriting. Oura’s upcoming IPO is expected to value the company at over $11 billion, with Goldman Sachs, Morgan Stanley, JPMorgan Chase, Allen & Co., and Jefferies serving as joint lead underwriters; Robinhood ranks last among the 18 underwriting firms. Robinhood received regulatory approval for its underwriting business in June this year. As an underwriter, Robinhood is expected to gain greater influence over how many shares are ultimately allocated to its retail clients. Popular IPOs typically prioritize institutional investors, leaving retail investors through brokers with allocations often far below actual demand. Robinhood and Oura have previously established several connections: Oura has invited Jason Warnick, former CFO of Robinhood, to join its board; Robinhood’s closed-end fund, launched in March this year, also invested in Oura, with Oura accounting for 3.64% of the fund’s assets. However, Professor Reena Aggarwal of Georgetown University’s Finance Department believes Robinhood’s initial influence in the IPO underwriting market may still be limited.