(Reuters) -Roblox Corp said on Wednesday it intends to go public through a direct listing, rather than an initial public offering (IPO) as originally planned, and has raised new funding in a deal that values the US gaming platform close to $ 30 billion.
In a statement, Roblox said it had raised about $ 520 million in a new Series H private fundraising round led by Altimeter Capital and Dragoneer Investment Group.
The financing round valued Roblox at $ 29.5 billion, more than seven times the $ 4 billion in which the company was valued in the G-Series round 11 months ago.
Roblox, based in San Mateo, California, is among the world’s most popular children’s gaming sites and offers a wealth of games on mobile devices and game consoles.
U.S. demand for video games has increased as consumers seek home entertainment while living under blockade measures to curb the spread of COVID-19.
Reuters previously reported Roblox’s plans to switch to a direct list.
The move comes after Roblox told employees last month that it had postponed its planned IPO until 2021 as it worked with advisors to improve the process for the benefit of employees and investors.
In a direct quote, no shares are sold in advance, as is the case with IPOs. The price of the company’s stock on its market debut is determined by orders entering the stock market. Proponents argue that it is a better way to value new stocks than going public.
Roblox would be the fifth high-profile company to go public through a direct listing, following music streaming service Spotify Technology SA and data analysis firm Palantir Technologies.
Unlike IPOs, companies have traditionally not raised money through direct listings.
Report by Joshua Franklin in Miami and Anirban Sen in Bangalore; Edited by David Gregorio and Richard Pullin