Roblox postpones its IPO until next year

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Roblox Corp. delayed its scheduled IPO after company officials ruled that Airbnb’s gravity-defying performance this week Inc.

et DoorDash Inc.

made it too difficult to determine the right price for the shares of the video game company.

Roblox was scheduled to go public in December, as part of a year-end rush of companies looking to tap the hot market for initial public offerings. Similar to other recent issues, the San Mateo, Calif., Company, valued at around $ 4 billion earlier this year, is expected to attract strong investor demand.

But he told employees in a note Friday night that the list would be postponed until early next year.
The surprise move comes at the end of a week to remember in the IPO market. Airbnb and DoorDash shares beat expectations when they started trading on Wednesday and Thursday, respectively.

The companies, which have yet to make consistent profits, are now valued at $ 97 billion and $ 65 billion, respectively, on a fully diluted basis. Shares of artificial intelligence software company C3.ai Inc.

also increased on the first day of trading.

Day one pops raised questions about the IPO pricing system. When stocks jump like Airbnb and DoorDash, companies miss out on billions of dollars they could have raised and hand them over to investors, some of whom are just there to make a quick buck.

“Based on everything we have learned to date, we believe there is an opportunity to improve our specific process for employees, shareholders and future investors, large and small,” said the CEO of Roblox, David Baszucki, in the note, which was seen by The Wall Street Journal. He added that the business of the company is strong.

Roblox operates a free online platform containing millions of games created by its own players with tools provided by the company. It generates income by selling virtual currency to users called Robux to purchase in-game perks such as virtual pets or accessories to customize the appearance of their avatars. The company profited as the pandemic increased demand for online games.

Write to Maureen Farrell à [email protected]

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