Roblox surges in NYSE debut

Shares of U.S. gaming company Roblox Corp were set for a jump of up to 60% in its New York Stock Exchange trading debut on Wednesday, which would value the company at more than $46 billion.

Roblox is among the world’s most popular gaming sites for children and offers a host of games across mobile devices and gaming consoles.

Roblox’s stock was indicated to open at a range between $67 and $72, up from the reference price of $45 per share which was set on Tuesday and is based on where its stock had been trading in less liquid private markets.

At $72 per share, Roblox would have a fully diluted valuation, which includes unvested stock options and restricted stocks, of $46.8 billion and a market capitalization of $39.6 billion.

Roblox said in January it had raised around $520 million in a new Series H private fundraising round in a deal with a fully diluted valuation of $29.5 billion, more than seven times the $4 billion valuation in its Series G round 11 months earlier.

Roblox is going public through a direct listing rather than a traditional initial public offering (IPO). This means the company is not selling any shares in advance of its market debut, as is the case with IPOs.

Roblox has benefited from U.S. demand for video games surging last year as consumers, amid lockdowns to curb the spread of the new coronavirus, sought home entertainment.