Roblox Corp has said it aims to go public via a direct record, rather than an initial public offering (IPO) as originally intended, and has raised new funding at a deal that values the U.S. gambling platform at nearly $30 billion.
In a statement, Roblox stated it had raised around $520 million in a brand new Series H private fundraising round led by Altimeter Capital and Dragoneer Investment Group.
The financing round valued Roblox at $29.5 billion, over seven times the $4 billion that the business was valued at in its Series G around 11 weeks ago.
San Mateo, California-based Roblox is one of the planet’s most popular gaming sites for kids and offers a plethora of games around mobile devices and games consoles.
US demand for video games has soared since consumers seek home entertainment whilst residing under lockdown measures to curb the spread of COVID-19.
Roblox’s plans to switch to a direct record was reported earlier by journalists at our partner news agency, Reuters.
The move comes after Roblox told employees last month it had set off its planned IPO until 2021 since it functioned with advisers to improve the procedure to benefit employees and investors.
In a direct listing, zero shares are sold in advance, as is the case with IPOs. The company’s share price in its market introduction is decided by orders coming to the stock market. Advocates argue it’s a better to way to cost new stock than an IPO.
Roblox are the fifth high profile business to go public through an immediate listing, after the likes of audio streaming service Spotify Technology SA and information analytics company Palantir Technologies.
Unlike in an IPO, companies have not traditionally raised any money via direct listings.
The team at Platform Executive hope you have enjoyed this news article. Initial reporting via our official content partners at Thomson Reuters. Reporting by Joshua Franklin in Miami and Anirban Sen in Bangalore. Editing by David Gregorio and Richard Pullin.
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