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As Roblox prepares to go public presumably early next year, there are already existing notable investors including Andreessen Horowitz.
Roblox Corporation has announced that it submitted registration documents on a confidential basis with the United States Securities and Exchange Commission (SEC) to go public via an IPO. However, the company has not disclosed the number of shares of Class A common stock to be sold and at what price.
Previously, media outlet Reuters reported the company would raise its valuation to double its current $4 billion. Notably, through a direct listing, no new shares are sold and underwriting banks do not weigh in on the pricing, unlike in an IPO.
Roblox Ahead of Its IPO
Roblox has seen an increased customer base during the pandemic as more people spend their time at home with their families. With more people ready to spend on quality games and gaming platforms, the company is seeking to raise more capital to become competitive at a global scale.
Moreover, a recent study by the NDP group indicates that United States spending on video gaming hit record highs of $11.6 billion during the second quarter when the pandemic was at its peak. The figures were 30% more than those reported a year ago during the second quarter. With the industry set to grow further in the coming quarters, Roblox wants to sell itself to investors and grow its business.
As Roblox prepares to go for IPO presumably early next year, there are already existing notable investors including Andreessen Horowitz. Roblox has been operating fermium games both in iOS and android platforms, whereby it offers in-game purchases.
Over the years, the company has been hosting the annual Roblox Developer Conference (RDC) is a special invite-only event for the best artists, game developers, designers, storytellers, and coders from the Roblox community. The conference has been used to unveil new gaming features as it brainstorms with global leading developers and content creators.
During the 2017 Roblox Developers Conference, the company reported that the creators on the gaming platform collectively earned at least $30 million in that year.
The platform has several popular games that have seen its revenue scale up over the years. As of August 2020, at least 20 games have been played more than one billion times and more than 5K have been played more than a million times. One of its popular games is called ‘Adopt Me!’. Notably, during the height of the pandemic, the game was played more than 10 billion times. Other popular games produced by Roblox includes ‘Jailbreak’, ‘MeepCity’, ‘Murder Mystery 2’, and ‘Natural Disaster Survival’.