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Figs stock is available to request on Robinhood before it debuts on the NYSE

The healthcare apparel startup had a banner year in 2020. In an unusual move, shares can now be requested on Robinhood at the IPO price.

Figs stock is available to request on Robinhood before it debuts on the NYSE
[Photo: Figs]
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After a blockbuster year that saw net revenue climb from $110.5 million in 2019 to $263.1 million in 2020 (even as it donated tens of thousands of scrubs to healthcare workers across the country), direct-to-consumer apparel startup Figs will make its market debut on the New York Stock Exchange this week.

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And for the first time, retail investors (industry parlance for nonprofessional buyers and sellers) are going to be allowed to try to get in on the ground floor by asking to purchase stock through Robinhood before the debut. The investment app just rolled out IPO Access, a tool that lets its users potentially access shares of companies at the IPO price, in a move meant to democratize an aspect of investing that traditionally was exclusive to wealthy investors and professional traders.

The company is offering 22,500,000 shares of its Class A common stock at between $16 and $19 per share. That brings Figs a valuation in unicorn territory, at more than $3 billion. The share offering is split between Figs’s own 5,875,000 shares of Class A common stock and 16,625,000 from those of its largest shareholder, Tulco. Figs isn’t receiving any proceeds from the sale of Tulco’s shares. Additionally, Tulco is offering 3,375,000 shares of Class A common stock to underwriters who will have a 30-day option to purchase at the IPO price, “less underwriting discounts and commissions,” according to a company statement.

For novice investors who want to take the plunge into IPOs, Robinhood is offering information and context, including a company’s preliminary prospectus, which details its business model, management team, and risk factors. In a blog post, Robinhood reiterated its own position on making investing more fair for everyone: “IPO shares can be very limited, but all Robinhood customers get an equal shot at shares regardless of order size or account value.”

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Figs is expected to begin trading on the NYSE under the FIGS ticker symbol later this week.

About the author

Lydia Dishman is a reporter writing about the intersection of tech, leadership, and innovation. She is a regular contributor to Fast Company and has written for CBS Moneywatch, Fortune, The Guardian, Popular Science, and the New York Times, among others.

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