Roblox Plans to Go Public Through Direct Listing
By Kimberly Chin
A month after shelving its plans to go public, videogame company
Roblox Corp. said it raised $520 million and that it is planning a
A direct listing allows companies to float their shares directly
on the stock market, rather than going through the underwriting
process typically associated with taking a company public.
Data-mining firm Palantir Technologies Inc., streaming service
Spotify Technology SA and workplace messaging platform Slack
Technologies Inc. went public via direct listings.
A Series H funding round led by Altimeter Capital and Dragoneer
Investment Group placed the company's shares at $45 apiece,
bringing its valuation to a total of $29.5 billion. The company was
valued at $4 billion following a $150 million raise in February
The Investment Group of Santa Barbara and Warner Music Group
also participated in the funding round, as did several of its
The company said the proceeds will go toward Roblox's growth
initiatives and platform that will enable shared experiences among
its billions of users.
Roblox was set to go public in December. part of a year-end rush
of companies seeking to tap the red-hot market for initial public
offerings. However, The Wall Street Journal reported on Dec. 11
that the company had delayed its offering after company officials
decided that the high trading performance of Airbnb Inc. and
DoorDash Inc. made it too difficult to determine the right price
for the videogame company's shares.
San Mateo, Calif.-based Roblox, which was established in 2004,
operates a free online platform that has millions of games created
by its own players with tools the company provides.
It generates revenue by selling virtual currency to users called
Robux for purchasing in-game perks such as virtual pets or
accessories for customizing the look of their avatars. The company
has benefited as the pandemic has supercharged demand for online
Write to Kimberly Chin at email@example.com
(END) Dow Jones Newswires
January 06, 2021 19:29 ET (00:29 GMT)
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