They start ‘em young, and now they’re going to cash in.
Roblox, the kids’ entertainment company with a loyal – if youthful – customer base, was set to go public on Wednesday after being valued at $29.5 billion in January.
Its specialty? Enabling users to easily create new games – no complex coding involved – via a top-grossing app for Apple and Google devices.
At 11 a.m. ET on Wednesday, Roblox’s stock was indicated to open at between $67 and $72, up from the reference price of $45 per share which had been set on Tuesday.
According to Reuters, shares of Roblox Corp were set for a jump up to 60% in the U.S. company’s New York Stock Exchange trading debut on Wednesday.
And that means a value topping $46 billion.
San Mateo, Calif.,-based Roblox is among the world’s most popular gaming sites for children and offers a host of games across mobile devices and gaming consoles.
“This is a milestone along a journey that started over 15 years ago,” Roblox Chief Executive David Baszucki said in an interview before the stock started trading.
“Going public can bring awareness to our company, we can safely show our financials, we can show the value of what we’re doing.”
The youthful developers share 30% of the revenue, directed by the company, from virtual purchases.
A key measure of its success comes in the form of those payouts.
In an update to its prospectus, Roblox said it paid developers $328.7 million last year, up almost 200% from 2019, and exceeding 2020 sales growth of 82% covering $923.9 million in total revenue.
Included among the more than 1,250 developers making at least $10,000 in the company’s digital currency Robux (which can be converted to cash), at least 300 creative people earned $100,000 or more.