Online Gaming Platform Roblox Postpones IPO Until Early Next Year

Online Gaming Platform Roblox Postpones IPO Until Early Next Year

Image: Courtesy of Roblox

The gaming platform Roblox is moving its IPO date to early next year, the Wall Street Journal has reported.

What Happened

Roblox is hoping for a higher IPO price after seeing the shares of DoorDash Inc. (DASH) and AirbBnB Inc. (ABNB) jump dramatically following their listings this past week, according to sourced quoted separately by Reuters. In a memo reviewed by the Journal, Roblox CEO David Baszucki said the company will take time to improve certain "processes" before listing its shares.

“Based on everything we have learned to date, we feel there is an opportunity to improve our specific process for employees, shareholders, and future investors both big and small,” WSJ quoted Baszucki as saying in the memo to employees. The California-based company, which allows users to create their own games on its platform, initially planned to go public this month.

IPO Frenzy

The announcement follows a week of highly anticipated IPOs. A major jump in share prices right after an IPO suggests the listing company misjudged where to set the initial price and missed out on an opportunity to raise more money for itself. The shares of Airbnb and DoorDash skyrocketed 142% and 92%, respectively, on the first day of trading, beating investors’ expectations.

© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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