Assalam Alaikum,
I would like to have your thoughts/ruling about IPO. I am planning to invest in (Robinhood IPO). If, for example, can’t buy Robinhood IPO (because of the underlying company), is it permissible to hunt down IPO for “shariah-compliant business domains”?
Jazak Allah Kairan and may Allah reward you for all that you do to help us adhere to our shariah.
Rachad
Robinhood has three sources of revenue:
Net interest revenues come primarily from Robinhood’s securities lending program and interest earned on margin lending and cash deposits, net of borrowing costs related to the company’s revolving lines of credit. Since this makes up 19% of the company’s total revenues, Robinhood (HOOD) would be shariah non-compliant.
Here’s a good breakdown of their S-1 filing if you’d like to learn more:
https://www.meritechcapital.com/blog/robinhood-ipo-s-1-breakdown