The New York Stock Exchange (NYSE) has placed a price tag on the stock Roblox, which will start trading on the stock exchange on Wednesday morning – $ 45 per share.
This reference price is basically just a good guess of the price of a stock. In its announcement, the NYSE emphasized that the actual opening price will be determined from buy and sell orders collected from broker-dealers.
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Roblox, the operator of an extremely popular video game app, is being offered in a direct public offering (DPO). In contrast to the more traditional IPO, in which newly sown shares are sold to the public by investment bank insurers, existing shareholders in a DPO sell their shares to investors via a stock exchange. The company previously planned to run a stock exchange, but changed its strategy to a recent round of financing that raised about $ 520 million.
Roblox is currently not profitable, although it is growing rapidly. Revenue for 2020 was just under $ 924 million, representing a 82% year-over-year growth. This was due to an almost doubling of the daily active user (DAU), which grew to almost 32.6 million souls. Roblox’s net loss, meanwhile, was nearly $ 256 million, much deeper than the $ 71 million deficit in 2019.
The company expects more growth, though not at such a high rate. He believes that DAUs will increase by 9% in 2021, with a higher income of 60%.
Roblox is a very hot title with young players who have not yet reached their teens. It has a high name recognition among their parents; it, plus the potential growth of the company, should make it a popular stock once it is on the stock market.