Why Roblox Stock Skyrocketed Today
The latest stock to join the public markets exploded out of the gates.
What happened
Shares of Roblox (NYSE:RBLX) soared 54% on Wednesday, marking a successful first day of trading for the popular video game developer.
So what
Roblox went public via a direct listing, rather than the traditional initial public offering (IPO) process. A direct listing allows a company's existing investors to sell shares directly to the public, without the need for an investment bank to underwrite the offering.
"We love the direct listing for Roblox because we're all going to come together and that first trade is going to be at the same price for everyone," Baszucki said during an interview with Bloomberg Television.
The New York Stock Exchange set a direct listing reference price of $45 for Roblox's shares. That valued the game developer at $30 billion -- a steep increase from the $4 billion valuation investors assigned to the company in a funding round in February 2020. Still, investors apparently thought Roblox's shares were worth much more, and they bid their price up another 54% on Wednesday.
Thanks for Watching Please Don't forget like , share, and subscribe
see you next video
Comments
Post a Comment