Please ensure Javascript is enabled for purposes of website accessibility

Roblox Entering the Stock Market March 10

By Anders Bylund - Updated Feb 25, 2021 at 11:22AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The gaming-platform maker's public offering has been delayed twice and reshaped from an IPO to a direct sale.

Online game-platform operator Roblox has picked a new date for entering the public market. The company will now resell 199 million shares of stock on March 10.

Roblox originally planned to enter the market in December 2020. The filing was pushed to January 2021 when the initial public offerings (IPO) of home rental company Airbnb (ABNB 8.14%) and food delivery specialist DoorDash (DASH 5.46%) made a big splash. The debut was then postponed again as the Securities and Exchange Commission launched a review of the company's accounting practices.

Several dozen Roblox characters.

Image source: Roblox.

Instead of a traditional IPO, Roblox has elected to sell shares directly on the public market without the assistance of underwriters. The company will consult its financial advisors at Goldman Sachs, Bank of America, and Morgan Stanley (NYSE: MS) to set a listing price and set up the required paperwork, but the mega-banks don't get to play the potentially lucrative role of actively setting up the initial trades.

Roblox will be registered with the New York Stock Exchange under the ticker symbol RBLX. The publicly available Class A shares carry one vote each, while a separate Class B stock comes with 20 votes per share. Class B shares will not be available to retail investors, ensuring that 70% of the voting rights stay under the control of Roblox CEO David Baszucki, who holds all of these vote-boosted shares.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Airbnb, Inc. Stock Quote
Airbnb, Inc.
ABNB
$103.51 (8.14%) $7.79
DoorDash, Inc. Stock Quote
DoorDash, Inc.
DASH
$74.11 (5.46%) $3.84

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
321%
 
S&P 500 Returns
111%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/25/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.