Roblox expects direct listing on NYSE in February


Roblox CEO David Baszuki

Roblox

Robel said in an updated prospectus on Friday that it plans to go public via a direct listing next month, as the online game company delayed its debut in December.

Earlier this week, Roblox revealed that it raised $ 520 million in a private financing round ahead of a direct listing. By taking this route into the public markets rather than a traditional IPO, Roblox is following Spotify, Slack, Palantir and Asana by setting aside a share sale, and instead allowing existing stakeholders and employees to immediately sell the stock to new investors gives.

At the latest funding round, $ 45 per share, Robel was valued at $ 29.5 billion. In an updated filing, Roblox said an independent valuation report in December put the shares at $ 41.52. By raising some money before going public, Roblox was able to pad its balance sheet and preserve its ability to bring in more capital through a secondary sale later this year.

Under direct listing, the NYSE will set a reference price for the stock on the night before the start of Robox, but no shares will trade at that price. In the morning, market makers will match buyers and sellers to determine the initial price and the stock will be available to the broader market under the ticker symbol “RBLX”.

Roblox was considering a more traditional IPO, but its plans were changed after Doordash and AirBnB popped up last month, raising concerns that the company risked leaving too much money on the table.

“Due to market volatility and the performance of other recently written initial public offerings, we pursued a direct listing to permit the filing of this prospectus as an amendment to the registration statement and to determine the initial public value of our class. Has chosen to. NYSE bought and sold orders collected by the NYSE from broker-dealers.

Because it is not doing an IPO, Roblox no longer needs an underwriter. The company said Goldman Sachs and Morgan Stanley would remain as financial advisors, but JP Morgan, Bank of America and RBC Capital Markets were dropped from the filing.

Welcome to bloxburg

Roblox

Roblox, which first released its service in 2006, is capturing the public market after a year of dramatic growth as children, Those who were forced to stay indoors during the epidemic spent more time playing the game.

Revenue in the third quarter increased by 91% to $ 242.2 million from a year earlier. Daily active users almost ended in September to 36.2 million and “took hours” more than doubled to 8.7 billion.

On Roblox’s app, users create an avatar that they can move between millions of different games. They are all free to play, but users purchase a virtual currency called Robux for advanced features or to build their character.

The games are built by external developers, who share revenue with Roblox. The company said in an updated filing that in the first three quarters of 2020, the platform had about 3,800 developers, which earned $ 215 million. This is from a year ago, when 2,400 developers made $ 72.2 million.

Although many game creators deposit cash in real-world currency, “some choose to reorganize their Robox into developer tools, promote their experiences through our internal ad network, or from another user’s As do Robux, ”the company said.

– Leslie Picker of CNBC contributed to this report.

Watch: Robo IPO and file for a dramatic twist?

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