Initial public offerings or IPOs are known as a great way for investors to make a big profit in a relatively short time. On average, they can bring investors 40% returns in the first 3 months. Furthermore, if they believe in the company’s long-term success then the sky’s the limit. Successful companies can bring tens of thousands of percent of profit to early investors over time.
Once the initial funding stages are out of the way, IPOs can be a great way for companies to gain exposure to the open market, help the company grow by attracting more capital and improve liquidity. Going public also gives early investors the opportunity to trade shares and easily cash in on their investment.
In this series we’re looking at past and upcoming IPOs, which should give you some ideas for what to invest in. If you or your kids use Roblox, you might be wondering, “is Roblox publicly traded?” or “when is Roblox going public? as you might be interested in investing in the company. Read on to find out about Roblox stock IPO, Roblox IPO release date and all the important details about Roblox IPO 2021.
Roblox is an online gaming platform that lets users play games created by other users as well as program their own. The game can be played at any age, but it is targeted at kids and game developers.
It draws comparison to Minecraft due to its immersive 3D worlds, but it has a host of other functions that make it different.
The game started in 2004, creating a unique format of games with basic programming and social media features. The average active user base is around 37 million every day — more than double the number in 2018, having benefited from a 85% surge during the 2020 pandemic. According to the company, about 54% of users are under 13 years old.
The platform works thanks to a massive community of creators and developers that create not just games but also educational and social experiences.
The company makes money via a virtual currency Robux, which can be used for buying additional experiences, avatars and items, and is used by the company for paying developers. Some of the features of the game are free, which attracts large audiences and helps to grow the active user base, which grows the number of paying customers and the company's profits.
Even though revenue has tripled since 2018 to almost a billion a year, the company is yet to break even, which is normal for a young company that is reinvesting into more developers and content creators. The company has had good cash flow in recent years and has great potential to grow into something even bigger.
CEO and co-founder David Baszucki, who owns 13% of Roblox Corporation, has a net worth of $30 million.
The company decided to go down the route of a traditional IPO despite the fact that many companies go public through a special purpose acquisition company (SPAC).
Read on to find out about Roblox IPO date and price and other key info.
Roblox Public Listing Key Data and IPO Date
Roblox IPO Date: March 10, 2021
Stock symbol (ticker): RBLX
IPO stock price: $70
Valuation at IPO: $41 billion
Market cap (11/29/21): $71 billion
CEO: David Baszucki
Category: Gaming stocks
Listing method: Direct
Roblox went public on March 10, 2021 launching its IPO on the NYSE with the ticker RBLX. The Roblox IPO price was set at $70 per share and the first trade was at $64.5, closing at $69.5 at the end of the day. The stock price fluctuated for 3 months and started growing, breaking the $100 mark.
At the beginning of November 2021 the stock started rising rapidly and reached an all-time high of $134.72 on November 14, soon reverting to low $120s. Thus, this stock brought early investors almost 100% in profit in just 8 months. This is a good example of the kind of returns a good IPO can bring. This is why it’s good to watch every company going public from before their IPO date and beyond.
Read on to find out whether it’s a good idea to invest in this stock after the Roblox stock IPO date.
So What About Investing Now?
Even though it’s already been 8 months since the Roblox IPO, this stock is a great addition to any gaming fan’s watchlist. The company’s fundamentals look good and the stock is likely to keep growing as continuing lockdowns are likely to keep kids all around the world glued to their computer screens, asking their parents to spend their pocket money on skins and avatars in the game.
Roblox has a great market cap of $71 billion, which should make this stock relatively stable. On the other hand, despite good business performance, the stock price from now on might be a long-term game. Early investors might have already benefited from a 100% return on their investment from the IPO process and Roblox’s first successful year on the stock market. However, if you like the company or if you’re involved with development or creation of content for the game or if you simply follow the news and like where Roblox is going as a business, it might as well be worth investing now despite the stock being slightly overpriced.
Thanks for reading this overview of Roblox going public. Check out our IPO section to look at other scheduled IPOs. If you want to find companies that match your interests, investment goals and portfolio, try Gainy for some great IPO investment ideas, as well as established blue-chip companies and a variety of other assets.
When is the Roblox IPO date?
The Roblox IPO was launched on March 10, 2021. The company was listed on the NYSE via a direct listing.
Is Roblox a public company?
Yes, Roblox has been a public company since its IPO date on March 10, 2021. When a company launches an IPO, this means they are becoming public.