Topic: How To Invest

Spinoffs & Takeovers Hotline – Friday, December 10, 2021

Article Excerpt

ROBLOX CORP., $115.89, symbol RBLX on New York, provides gaming enthusiasts with a platform to create, develop, and monetize video gaming, as well as socialize in 3D virtual worlds. The company began trading on New York on March 21, 2021. But rather than list through an IPO, it opted for a direct listing on the exchange. That means there were no underwriters involved, and existing shareholders, large and small, were allowed to sell their shares up to a combined preset limit of 388.2 million. The company, itself, did not raise any funds through the direct listing. Unlike an IPO, there is no set price when a company does a direct listing. The price is determined by supply and demand. The New York exchange set an initial reference price of $45 for its IPO. Its stock closed its first day of trading at $69.50. In November, Roblox’s stock hit an all-time high of $141.60. It has since fallen back to $115.89. San Mateo, California-based Roblox…