Roblox Delays IPO Until Next Year

But it announced to employees in a memo late Friday that the listing would be delayed until early next year.

The surprise move comes at the tail end of a week to remember in the IPO market. Shares of Airbnb and DoorDash soared beyond expectations when they began trading Wednesday and Thursday, respectively.

The companies, which have yet to turn consistent profits, are now valued at $97 billion and $65 billion, respectively, on a fully diluted basis. Shares of artificial-intelligence-software company C3.ai Inc. also spiked on their first day of trading.

The first-day pops have raised questions about the system of pricing IPOs. When shares jump like Airbnb’s and DoorDash’s did, the companies miss out on billions of dollars they might have raised and instead hand them to investors, some of whom are only in it to make a quick buck.

“Based on everything we have learned to date, we feel there is an opportunity to improve our specific process for employees, shareholders and future investors both big and small,” Roblox Chief Executive David Baszucki said in the memo, which was viewed by The Wall Street Journal. He added that the company’s business is strong.

Roblox operates a free online platform that has millions of games created by its own players with tools the company provides. It generates revenue by selling virtual currency to users called Robux for purchasing in-game perks such as virtual pets or accessories for customizing the look of their avatars. The company has benefited as the pandemic has supercharged demand for online gaming.

Write to Maureen Farrell at [email protected]