Popular video-game platform Roblox announces public offering that could value the company at $8 billion

Popular video-game platform Roblox announces public offering that could value the company at $8 billion
Roblox CEO David Baszucki introduces one of the new Roblox games.Roblox
  • The video-game platform Roblox filed confidentially for a public offering, according to a Monday press release.
  • The number of shares to be sold and their price range have not yet been decided.
  • The offering could raise Roblox's valuation as high as $8 billion, Reuters reported earlier this month. That would double the $4 billion valuation it received in a February funding round.
  • Roblox hadn't yet determined whether it wanted to go public through a traditional initial public offering or a direct listing, according to the report.
  • Visit the Business Insider homepage for more stories.

The popular gaming platform Roblox announced Monday it filed confidentially for a public offering.

The company previously submitted a draft registration with the Securities and Exchange Commission to sell shares of its common stock, according to a press release. The number of shares to be sold and their price range have not yet been decided.

Roblox's platform offers users games across gaming consoles and mobile devices. Though the platform itself is free, users can spend money on in-game items.
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The company announced in July it had more than 150 million monthly active users. Roblox also expects to rake in more than $250 million this year, up from $110 million in 2019, it said.

Read more: The global investment strategist at a $44 billion ETF shop explains why the pandemic-fueled boom of online retail is set to accelerate — and shares 5 stocks to watch other than Amazon ahead of its Prime Day

Reuters first reported Roblox's plans to go public on October 1. The company could target a valuation as high as $8 billion depending on market demand, according to the report. Roblox was last valued at $4 billion in February after it raised $150 million in a Series G funding round.
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Roblox hadn't decided whether to make its public-market debut through a traditional initial public offering or a direct listing as of the early October report.

The latter option has grown in popularity in recent years. Direct listings allow firms to begin trading publicly without selling new shares and watering down the stock's value. Funds aren't raised in such listings. Now read more markets coverage from Markets Insider and Business Insider:
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