![]() That was followed by reports that the company was butting heads with the SEC over how it recognizes revenue from the sale of its Robux currency, further delaying the process. The story changed once more in early January, when Roblox decided it would go the direct listing route instead and scooped up $520 million from investors led by Altimeter Capital and Dragoneer Investment Group, valuing the company at $29.5 billion. ![]() Then, Roblox r eportedly told employees it wouldn’t launch the IPO until early 2021 because strong preceding IPOs from Airbnb Inc. 19 after disclosing its plans the previous month. The San Mateo, Calif., company originally filed for an IPO on Nov. In late December 2020, however, the Securities and Exchange Commission (SEC) changed the rules around direct listings to allow companies to raise cash through direct listings by auctioning new shares along with those of current shareholders looking to sell.Roblox had delayed its public debut for months. ( WORK) are two notable tech firms that went public through direct listings under the traditional process. Direct listings were essentially undertaken for liquidity reasons, as new capital wasn't raised because only existing shares were auctioned on the market. There used to be a clear line between direct listings and IPOs. Roblox instead completed another round of private capital raising, meaning retail investors are once again missing out on most of the early growth in a tech company. ![]() The company's decision highlights some issues with the IPO process, including the difficulty hitting the right price.Roblox has decided to go with a direct listing rather than its planned IPO due to the pricing issues apparent in the market.
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