Gaming platform Roblox to delay IPO until next year

Roblox

Gaming platform Roblox has put off its planned initial public offering (IPO) until next year since it functions with advisers to improve the process to benefit investors and employees, the business told employees in a memo seen by journalists.

“We’ve seen companies take innovative approaches to creating a more market-based relationship between investors and companies,” Roblox Chief Executive David Baszucki said in the memo, dated Friday.

Baszucki said the company hopes to list early next season. The San Mateo, California-based firm had registered to raise $1 billion via the IPO on the New York Stock Exchange and was expected to combine a yearlong IPO wave.

A individual familiar with the firm said it hoped to get a greater IPO pricing after seeing Airbnb Inc and DoorDash Inc spike on their very first day trading this week, which it sees as illustrations of businesses under-pricing IPO stocks and earning money on the table.

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The Wall Street Journal reported Saturday the Affirm Holdings Inc can also be postponing its IPO.

The lending start-up, that had been set to begin promoting its shares to shareholders that this coming week to get a December record, will not go public until January at the first, the Journal reported, citing sources. Affirm declined to comment when contacted by Reuters.

DoorDash raised $3.4 billion and its stock rose up to 92% over the initial day of trading, while Airbnb jumped as much as 142% in its $3.5 billion IPO.

Before this season, Roblox had floated the idea of a direct record – in which present investors sell their stocks and investment banks perform less of a function – but ultimately chose the IPO path, sources explained.

The team at Platform Executive hope you have enjoyed this news article. Initial reporting via our official content partners at Thomson Reuters. Reporting by Ann Maria Shibu in Bengaluru and Krystal Hu in New York. Editing by Raju Gopalakrishnan and William Mallard.

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