After plans to go public were delayed, video industry operator Roblox Corp said it would hold a direct listing of its shares on March 10, a move that comes amid rising demand for home entertainment and online social experiences.
Roblox, based in San Mateo, California, originally offered an initial public offering last year, but it was discontinued after company officials decided that Airbnb Inc.’s strong trading debut and DoorDash Inc. making it too difficult to determine the right price for its shares.
In January, Roblox announced a rate change, saying it was opting for a direct listing. It also said it had raised more than half a billion dollars for a $ 29.5 billion valuation for the company, a sevenfold increase from a round of financing less than a year earlier.
However, Roblox’s listing plans took another hit earlier this month when the Securities and Exchange Commission called for changes in the way it accounts for the sale of virtual currency called Robux. The company said these issues have since been addressed.
Roblox, founded in 2004, creates a free online platform with tens of millions of games. The company’s user base has risen through the pandemic as home orders have meant more people have spent time online. It counted nearly 33 million daily active users last year, up from about 18 million the previous year.