(Reuters) -Roblox Corp said on Wednesday it intends to go public through a direct listing, rather than an initial public offering (IPO), as originally planned, and has raised new funding in an agreement evaluating the platform. of US games to nearly $ 30 billion.
In a statement, Roblox said it had raised about $ 520 million in a new H-series fundraising round led by Altimeter Capital and Dragoneer Investment Group.
The financing round valued Roblox at $ 29.5 billion, more than seven times the $ 4 billion the company valued at its G-series round 11 months ago.
Roblox in San Mateo, California, is one of the most popular children’s gaming sites in the world and offers a range of games on mobile devices and game consoles.
US demand for video games has risen as consumers seek home entertainment while living under lock-in measures to reduce the spread of COVID-19.
Roblox’s plans to move to a direct list were previously reported by Reuters.
The move comes after Roblox told employees last month that it has postponed the planned IPO until 2021 because it has worked with advisors to improve the process for the benefit of employees and investors.
In a direct listing, no shares are sold in advance, as is the case with IPOs. The price of the company’s stock at its market debut is determined by the orders that enter the stock exchange. Lawyers argue that it is a better way to value new shares than a public transaction.
Roblox would be the fifth profile company to be published through a direct list, following the music streaming services Spotify Technology SA and the data analysis company Palantir Technologies.
Unlike an IPO, companies have not traditionally raised any money through direct listings.
Reporting by Joshua Franklin in Miami and Anirban Sen in Bangalore; Edited by David Gregorio and Richard Pullin