Games company Roblox shares skyrocket in stock market debut
The shares of the American gaming company Roblox jumped up to 60% on its debut on the New York Stock Exchange on Wednesday, which values the company at more than $46 billion.
Based in California, Roblox is among the most popular children’s game sites in the world and offers a variety of games on mobile devices and game consoles.
“This is a milestone in a journey that began more than 15 years ago”, said Roblox Chief Executive David Baszucki in an interview before the shares started trading.
Roblox said in January that it raised about $520 million in a fundraising round, which then valued it at $29.5 billion, more than seven times the $ 4 billion valuation in its previous round of months ago.
Roblox is going public through a direct listing, which means that the company is not selling any shares before its market debut, as is the case with IPOs.
Roblox benefited from the increased demand for video games in 2020, as consumers, amid blockades to contain Covid-19, sought home entertainment.
“The company is expanding into other countries and making inroads with older users,” said Baszucki.