Robinhood introduces Directed Share Programs allowing retail investors to buy into IPOs

Online trading platform Robinhood revealed that it now supports Directed Share Programs (DSPs) through IPO access.

The blog post detailed that the service allows retail investors to buy shares at the IPO price.

The official announcement said:

DSPs are designed to recognize ‘friends’ of the company by giving them an opportunity to buy shares at the IPO price. They can facilitate meaningful community-driven interactions between companies going public and the individuals who have been a part of their journey leading up to the IPO.


The new feature allows the company to reserve shares, at the IPO price, for a specific group of people. Robinhood helps allocate these shares to the chosen individuals through the program. The invited by the issuer individuals to take part in the DSP at the IPO price can then use the Robinhood app to request shares at the initial public offering price.

The news follows Robinhood’s announcement of its plans to double headcount on its engineering, compliance and regulatory teams in 2021.

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