Roblox goes public on March 10
Online gaming platform operator Roblox has chosen a new date for its entry into the public market. The company will now sell 199 million shares on March 10.
Roblox originally planned to enter the market in December 2020. The filing was pushed back to January 2021 when the house rental company’s initial public offerings (IPOs) Airbnb (NASDAQ: ABNB) and food delivery specialist DoorDash (NYSE: DASH) made a lot of noise. The debut was then postponed again as the Securities and Exchange Commission launched a review of the company’s accounting practices.
Instead of a traditional IPO, Roblox chose to sell shares directly into the public market without the help of underwriters. The company will consult with its financial advisers at Goldman Sachs, Bank of America, and Morgan stanley (NYSE: MS) to set a listing price and put in place the required documents, but mega-banks cannot play the potentially lucrative role of actively setting up initial transactions.
Roblox will be listed on the New York Stock Exchange under the ticker symbol RBLX. The publicly available Class A shares each have one vote, while a separate Class B share has 20 votes per share. Class B shares will not be available to retail investors, ensuring that 70% of the voting rights remain in the control of Roblox CEO David Baszucki, who owns all of these vote-backed shares.
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