![]() ![]() I don’t know what Roblox’s stock will do going forward, but the future of the industry is going to be built on the backs of games like this, and it’s why Microsoft buying Minecraft several years ago for $2.5 billion looks like a steal. In late December 2020, however, the Securities and Exchange Commission (SEC) changed the rules around direct listings to allow companies to raise cash through direct listings by auctioning new shares along with those of current shareholders looking to sell.Is a $40 billion market cap overvaluing Roblox? Should a company with a single free to play game be worth twice what the maker of GTA 5 is worth, the best-selling AAA game of all time by several orders of magnitude? That’s something for the stock market to sort out, but there’s no question that Roblox has put the time in to warrant this kind of success, and it has quietly been amassing a truly astonishing amount of players including being the main gaming experience for hundreds of millions of children worldwide. ( WORK) are two notable tech firms that went public through direct listings under the traditional process. Direct listings were essentially undertaken for liquidity reasons, as new capital wasn't raised because only existing shares were auctioned on the market. There used to be a clear line between direct listings and IPOs. Roblox instead completed another round of private capital raising, meaning retail investors are once again missing out on most of the early growth in a tech company.The company's decision highlights some issues with the IPO process, including the difficulty hitting the right price.Roblox has decided to go with a direct listing rather than its planned IPO due to the pricing issues apparent in the market. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |