Roblox goes public and begins trading March 2021
Roblox’s Stocks will hit NYSE Next Month. There it is, has finally decided to go public and begin trading shares next month. In an SEC filing, the details emerged about going public “on or about” March 10. it is a famous user-generated games platform specifically for kids who initially planned to file an IPO in November last year.
However, now the company has decided to go public via direct listing following the likes of Slack and Spotify. The initial plan of going public by filing an IPO changed when David Baszucki circulated a memo. Baszucki’s memo said that the company has decided to work with advisers on how to make more improvements for investors and employees before going public. The memo said, “By adopting that accounting position, our revenue will actually be a bit higher, while bookings, DAUs (Daily Active Users), hours of engagement, and cash flow will not change.” He further added, “It will, however, take us some time to update this change in our financial statements.”
Besides the Baszucki memo, the plan to go public also got delayed when SEC demanded modifications in the way Roblox accounts for its virtual currency Robux. Now, Roblox says that it has sorted out the issue. Now, it is all set to join the New York Stock Exchange and has been approved to get enlisted as Class A common stock. Roblox stock exchange symbol is “RBLX,” so keep an eye on this symbol on March 10th.
At the moment, the company’s valuation is $29.5 billion Roblox
thanks to a new influx of funding via the Series H fundraising round. The funding round raised $520 million which was led by Dragoneer Investment Group and Altimeter Capital. It’s growth trajectory is promising and many were waiting for its shares on the stock market. Let’s see how welcoming a response the game studio gets next month.