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Roblox Decides On A Public Listing, Poshmark Sets Its IPO Price Range

A look into the next companies expected to hit the public markets.
(Miguel Lagoa)
(Miguel Lagoa)
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Gaming and game creation platform Roblox announced Wednesday that it plans to go public through a direct listing, The Information reports.

Why It Matters: Roblox initially had plans to go public by way of an IPO in November. But then Airbnb and DoorDash hit the market and saw their stocks surge, “which fueled criticism that IPOs can shortchange companies” and resulted in Roblox delaying. Roblox can list existing shares on the market without rounding up new money with a direct listing, averting some of the price-inflating criticisms of the IPO process.

Numbers To Consider:

  1. Roblox just raised $520 million in a Series H funding round.
  2. Its valuation is now $29.5 billion, a startling increase from $4 billion in February 2020.
  3. Roblox generated $488 million in revenue in 2019, a 56% increase from the prior year.

Meanwhile, online used clothes marketplace Poshmark set its IPO price range between $35 and $39 per share, The Information reports.

A Closer Look: That gives Poshmark a valuation of $2.7 billion, which is roughly 13.5 times the company’s 2019 revenue of $205 million. Those numbers account for Poshmark’s 28% revenue growth in 2020’s first nine months, meaning the multiple would be smaller if purely applied to this year’s figures.

What’s Next: Poshmark could start trading in a matter of weeks and could raise $240 million based on the tentative price range.

Justin Oh:

We will try to cover Poshmark and Roblox in the coming weeks, so please stay tuned!

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