Initial listing for $45/ Share, anticipating a bullish movement. Beware of pump and dump activity. A couple of things to keep in mind with this IPO:
RBLX is going public as a direct listing. This means they will not be raising money, and current share holders will be able to sell according market demands.
Reference price does not indicate the market capitalization
COVID-19 had some very positive impacts on Roblox with rapid growth in the first 9 months of 2020.
Roblox has a very unique business model. They outsource their game development. In addition to being a gaming platform, they also bill themselves as a creation platform for user generated games, developers receive 30% of proceeds.
Roblox hopes to spend more on their developers in the future to incentivize higher quality games.
Roblox makes almost all of its money through virtual items. (Reported by CNBC) Users develop avatars, clothes, virtual weapons and sell them.
This company could serve as good opportunity for growth. As many other IPO’s, personally, I will be looking forward to seeing how they do in their first quarter being publicly traded.