The deal gave Roblox a $29.5 billion valuation. The shares will trade under the ticker ‘RBLX’ on the New York Stock Exchange.Īs you may or may not know, Roblox raised $520 million from investors in a private funding round. After shelving an IPO in December, video game developer Roblox is slated to go public through a direct listing of shares on March 10.
stock market, there are still some that you just might want to consider. Despite the premium valuation in the U.S. And investors would probably be better off picking only a few that are the fittest. In late December 2020, however, the Securities and Exchange Commission (SEC) changed the rules around direct listings to allow companies to raise cash through direct listings by auctioning new shares along with those of current shareholders looking to sell.Yet for every big success like that, there are dozens of failures. ( WORK) are two notable tech firms that went public through direct listings under the traditional process. Direct listings were essentially undertaken for liquidity reasons, as new capital wasn't raised because only existing shares were auctioned on the market. There used to be a clear line between direct listings and IPOs. Roblox instead completed another round of private capital raising, meaning retail investors are once again missing out on most of the early growth in a tech company.The company's decision highlights some issues with the IPO process, including the difficulty hitting the right price.Roblox has decided to go with a direct listing rather than its planned IPO due to the pricing issues apparent in the market.
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