(Reuters) -Roblox Corp said on Wednesday that it plans to go public through a direct listing, rather than an initial public offering (IPO) as originally planned, and has raised new funds in a business that values the gaming platform. of the US by nearly $ 30 billion.
In a statement, Roblox said it had raised about $ 520 million in a new round of Series H private fundraising 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 was valued in its Series G round, 11 months ago.
Roblox, based in San Mateo, California, is among the most popular children’s game sites in the world and offers a variety of games on mobile devices and game consoles.
US demand for video games has increased as consumers seek home entertainment while living under restrictive measures to stem the spread of COVID-19.
Roblox’s plans to move to a direct listing were previously reported by Reuters.
The move comes after Roblox told employees last month that he had postponed his planned IPO to 2021, while working with consultants to improve the process to benefit employees and investors.
In a direct listing, no shares are sold in advance, as is the case with IPOs. The company’s stock price on its market debut is determined by orders arriving at the stock exchange. Supporters argue that it is a better way to price new shares than an IPO.
Roblox would be the fifth high profile company to go public through a direct listing, following companies such as music streaming service Spotify Technology SA and data analysis company Palantir Technologies.
Unlike an IPO, companies traditionally do not raise money through direct listings.
Reporting by Joshua Franklin in Miami and Anirban Sen in Bangalore; Editing by David Gregorio and Richard Pullin