U.S. gaming platform Roblox to delay IPO until next year

By Krystal Hu and Ann Maria Shibu (Reuters) - U.S. gaming platform Roblox Corp has put off its planned initial public offering (IPO) until next year as it works with advisers to improve the process to benefit employees and investors, the company told employees in a memo seen by Reuters. 'We've seen companies take innovative approaches to creating a more market-based relationship between investors and companies,' Roblox Chief Executive David Baszucki said in the memo, dated Friday

Reuters December 13, 2020 05:05:09 IST
U.S. gaming platform Roblox to delay IPO until next year

US gaming platform Roblox to delay IPO until next year

By Krystal Hu and Ann Maria Shibu

(Reuters) - U.S. gaming platform Roblox Corp has put off its planned initial public offering (IPO) until next year as it works with advisers to improve the process to benefit employees and investors, the company told employees in a memo seen by Reuters.

"We've seen companies take innovative approaches to creating a more market-based relationship between investors and companies," Roblox Chief Executive David Baszucki said in the memo, dated Friday.

"We've decided to take this opportunity to work with our advisers to see how we can make such improvements."

Baszucki said the company expects to list early next year. The San Mateo, California-based firm had filed to raise $1 billion through an IPO on the New York Stock Exchange and was expected to join a year-end IPO wave.

A person familiar with the company said it hoped to get a higher IPO pricing after seeing Airbnb Inc and DoorDash Inc spike on their first day trading this week, which it sees as examples of companies underpricing IPO shares and leaving money on the table.

The Wall Street Journal reported on Saturday that Affirm Holdings Inc is also postponing its IPO.

The lending startup, which had been set to begin marketing its shares to investors this coming week for a December listing, will not go public until January at the earliest, the Journal reported, citing sources. Affirm declined to comment when contacted by Reuters.

DoorDash raised $3.4 billion and its stock rose as much as 92% on the first day of trading, while Airbnb jumped as much as 142% in its $3.5 billion IPO.

Earlier this year, Roblox had floated the idea of a direct listing - in which existing investors sell their shares and investment banks play less of a role - but in the end chose the IPO route, sources said.

(Reporting by Ann Maria Shibu in Bengaluru and Krystal Hu in New York; Editing by Raju Gopalakrishnan and William Mallard)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

France, Germany to agree to NATO role against Islamic State - sources
| Reuters
World

France, Germany to agree to NATO role against Islamic State - sources | Reuters

By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States

China's Xi says navy should become world class
| Reuters
World

China's Xi says navy should become world class | Reuters

BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.