Robinhood rally reverses after shareholders file to sell stock

A powerful rally in shares of Robinhood Markets reversed course on Thursday after shareholders filed to sell nearly 100 million shares of the zero-fee trading platform less than a week after its IPO.

Robinhood Markets Inc. tumbled after shareholders filed to sell nearly 100 million Class A common shares less than a week after its initial public offering. The trading platform’s stock dropped as much as 17% to $58.30, after early investors proposed to sell up to 97.88 million of shares over time. None of the proceeds will be received by Robinhood, with the selling stockholders getting all of the funds from the sales, according to a filing with the U.S. Securities and Exchange Commission. The listed sellers are some of Robinhood’s biggest investors and together combine to hold more than one-third of the firm’s current outstanding shares. The largest of those holders, Venture capital firm New Enterprise Associates, plans to trim its roughly 10% stake by about 3.9% or 2.9 million shares. Other sellers named in the filing include entities affiliated with Amplo, Andreessen Horowitz, ICONIQ Capital and Ribbit Capital.