US gaming site Roblox valued at US$30 billion, plans direct listing instead of IPO
- Roblox has raised around US$520 million in a private fundraising round led by Altimeter Capital and Dragoneer Investment Group
- It now aims to go public through a direct listing instead of an initial public offering as originally planned
In a statement, Roblox said it had raised around US$520 million in a new Series H private fundraising round led by Altimeter Capital and Dragoneer Investment Group.
The funding round valued Roblox at US$29.5 billion, more than seven times the US$4 billion the company was valued at in its Series G round 11 months ago.
San Mateo, California-based Roblox is among the world’s most popular gaming sites for children and offers a host of games across mobile devices and games consoles.
US demand for video games has surged as consumers seek home entertainment while living under lockdown measures to curb the spread of Covid-19.
Roblox’s plans to switch to a direct listing were reported earlier by Reuters.
In a direct listing, no shares are sold in advance, as is the case with IPOs. The company’s share price in its market debut is determined by orders coming into the stock exchange. Advocates argue it is a better to way to price new stock than an IPO.
Roblox would be the fifth high-profile company to go public through a direct listing, following the likes of music streaming service Spotify Technology and data analytics firm Palantir Technologies.
Unlike in an IPO, companies have not traditionally raised any money through direct listings.