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Roblox is going public

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Miguel A. Rodriguez
Miguel A. Rodriguez
12 March 2021
Roblox is going public through a direct listing

After postponing and changing its initial public offering, Roblox will finally become a publicly traded company. Roblox, which had filed its prospectus on November 19, has been on everyone’s lips ever since then. Let’s see what this company is about:

Roblox is an online game platform and a game creation system, allowing people to program and play games developed by other users. Even though the platform was founded in 2004 by David Baszucki and Erick Cassel, it officially hit the market in 2006.

Despite being on the market for more than a decade, Roblox has only gained popularity recently. The growth was accentuated by the pandemic, leading to an 82% jump in daily users in the past twelve months. The number of total hours spent on Roblox more than doubled, exceeding 22 billion.

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Revenues rose almost 82% to $923.9 million in 2020 from 2019’s figures. Currently, Roblox is among the top platforms in the online gaming sector, expected to be worth $196 billion by 2022. However, once the COVID-19 pandemic is over it is unclear if Roblox will keep growing.

According to an amended prospectus, Roblox is now going public via a direct listing, following the likes of Spotify, Slack, and Palantir. The listing will take place “on or about March 10” on the New York Stock Exchange, allowing Roblox to sell 198,917,280 shares, according to its SEC filing. The direct listing follows a January funding round where Roblox sold 12 million shares for $45 each, increasing the valuation to $29.5 billion.

Roblox will trade under the ticker RBLX. Goldman Sachs, Morgan Stanley, and Bank of America are acting as financial advisers.

Find out more by accessing our dedicated IPO page on CAPEX.com!

Sources: marketwatch.com, markets.businessinsider.com, barrons.com

This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

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Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.