Robinhood Markets Inc. shares fell 11% Thursday after a filing with the Securities and Exchange Commission indicated that early investors in the company will sell up to about 98 million shares, currently worth around $6.3 billion, over time.
The filing names more than a dozen shareholders who bought notes that could be later converted to shares ahead of the company’s initial public offering. Among the selling shareholders are tech private-equity firm Andreessen Horowitz, Iconiq Capital, Institutional Venture Partners and Ribbit Capital .
The investing platform operator said it wouldn’t receive the cash from these sales.
Ribbit Capital stands to be the biggest beneficiary, gaining nearly $681 million at prices indicated in the filing, which are far below Thursday’s trading price. Andreessen Horowitz, venture-capital firm Amplo, Greenoaks Capital and Iconiq Capital would stand to make more than $300 million each at the selling price indicated for fee-setting purposes.
Some of the listed selling stockholders are among those that participated in an emergency funding round for Robinhood earlier this year after the popular online brokerage faced a surge in collateral requirements during the meme-stock trading frenzy.