Oura, the maker of smart rings, has named Robinhood as an underwriter in its IPO filing, marking the retail brokerage's first formal participation in an IPO syndicate, according to The Wall Street Journal. The company is targeting a valuation of more than $11 billion for its upcoming listing. Goldman Sachs, Morgan Stanley, JPMorgan, Allen & Co., and Jefferies are serving as joint lead underwriters, with Robinhood listed last among 18 underwriters.
Robinhood obtained regulatory approval for underwriting in June this year. As an underwriter, the firm could gain more influence over how many shares are allocated to its customers, a key issue for retail investors who often receive fewer shares than they request in hot IPOs, which are typically prioritized for institutional investors.
Oura and Robinhood already have several ties. Oura has invited Robinhood's former finance chief Jason Warnick to join its board. A closed-end fund launched by Robinhood in March also invested in Oura, with the position representing 3.64% of the fund's assets. However, Georgetown University finance professor Reena Aggarwal said Robinhood's initial impact on the IPO underwriting market may remain limited.