Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Capital Markets

<p>Roblox, one of the leading global game platforms, announced on Friday (8 January) that it plans to go public through a Direct Public Listing (DPL), instead of the traditional IPO. Ahead of this direct public listing, <a href="https://www.cnbc.com/2021/01/08/roblox-expects-direct-listing-on-nyse-in-february.html" target="_blank" rel="noopener">Roblox</a> raised $520 million in private financing, valuing the company at $29.5 billion or $45 per share.</p><div class="content-highlight"><p><strong>Our valuation analysis suggests a base case implied market cap of $50 billion and a target price of $76.20 per share for Roblox. This would represent 69% higher level than its most recent private capital raise of $520 million, valuing the company at $29.5 billion or $45 per share. The direct listing valuation range is from $40.5 billion to $60.5 billion, according to our valuation sensitivity analysis. </strong></p></div>

Roblox, one of the leading global game platforms, announced on Friday (8 January) that it plans to go public through a Direct Public Listing (DPL), instead of the traditional IPO. Ahead of this direct public listing, Roblox raised $520 million in private financing, valuing the company at $29.5 billion or $45 per share.Our valuation analysis suggests a base case implied market cap of $50 billion and a target price of $76.20 per share for Roblox. This would represent 69% higher level than its most recent private capital raise of $520 million, valuing the company at $29.5 billion or $45 per share. The direct listing valuation range is from $40.5 billion to $60.5 billion, according to our valuation sensitivity analysis. 

Covering IPOs, Healthcare and Technology Stocks

Andrei Zakharov

Algosun Global

<p>The online gaming and entertainment technology decacorn Roblox intends to sell of up to ~197 million shares of Class A common stock through a direct listing in February. The opening public price of common stock on the NYSE will be determined by buy and sell orders collected by the NYSE from broker-dealers. Roblox has the largest global online gaming community with more than 150 million MAUs and ~75% of all American children ages 9-12 play Roblox. In 2019 Roblox entered into a JV agreement with Songhua, an affiliate of Tencent Holdings to pursue opportunities of expanding business in China.</p><p>Goldman Sachs and Morgan Stanley are lead financial advisors on the upcoming DPO. Roblox raised ~$856 million in funding over 9 rounds, according to Crunchbase. Their latest $520 million Series H round was led by Altimeter Capital and Dragoneer Investment Group.</p><p>Altos Ventures, Tiger Global Management, Andreessen Horowitz, Investment Group of Santa Barbara and Warner Music Group also participated in this funding round. The Series H round valued Roblox at ~$29 billion, assuming a purchase price of $45 per share. </p>

The online gaming and entertainment technology decacorn Roblox intends to sell of up to ~197 million shares of Class A common stock through a direct listing in February. The opening public price of common stock on the NYSE will be determined by buy and sell orders collected by the NYSE from broker-dealers. Roblox has the largest global online gaming community with more than 150 million MAUs and ~75% of all American children ages 9-12 play Roblox. In 2019 Roblox entered into a JV agreement with Songhua, an affiliate of Tencent Holdings to pursue opportunities of expanding business in China.Goldman Sachs and Morgan Stanley are lead financial advisors on the upcoming DPO. Roblox raised ~$856 million in funding over 9 rounds, according to Crunchbase. Their latest $520 million Series H round was led by Altimeter Capital and Dragoneer Investment Group.Altos Ventures, Tiger Global Management, Andreessen Horowitz, Investment Group of Santa Barbara and Warner Music Group also participated in this funding round. The Series H round valued Roblox at ~$29 billion, assuming a purchase price of $45 per share. 

Roblox DPO. Going Public Through A Direct Listing Instead Of A Traditional IPO

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<p>This is our second annual edition of the<em><strong> IPOs Pipeline Worldwide (Top 100 Companies)</strong></em>report. This year has been a superb year for the global IPO market and the pipeline of the global IPOs remains robust in 2021. Among the 100 potential IPOs, they are from 16 countries, including the US, China, India, UK, and Indonesia. We estimate that of these 100 companies, more than half should be able to complete their IPOs in 2021. </p>
<p>Most of the IPOs in this list have more than $1 billion in market cap. We believe that the first half of 2021 is likely to be a more active market than the second half of the year, as the companies and the bankers attempt to capitalize on the continued strong momentum for IPOs globally. </p>
<p><strong>This report is meant to serve as a comprehensive, reference guide to help clients so that they could get a broad view of the major IPOs that could get completed next year on a world-wide basis. </strong></p>
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This is our second annual edition of the IPOs Pipeline Worldwide (Top 100 Companies)report. This year has been a superb year for the global IPO market and the pipeline of the global IPOs remains robust in 2021. Among the 100 potential IPOs, they are from 16 countries, including the US, China, India, UK, and Indonesia. We estimate that of these 100 companies, more than half should be able to complete their IPOs in 2021. 
Most of the IPOs in this list have more than $1 billion in market cap. We believe that the first half of 2021 is likely to be a more active market than the second half of the year, as the companies and the bankers attempt to capitalize on the continued strong momentum for IPOs globally. 
This report is meant to serve as a comprehensive, reference guide to help clients so that they could get a broad view of the major IPOs that could get completed next year on a world-wide basis. 


2021 IPOs Pipeline Worldwide (Top 100 Companies)

<p>In this report, we review our IPO investment research in 2020, including the performance of our calls and how we plan to change our process of selection for IPO research in 2021. For those who follow Smartkarma's IPO research, this platform provides one of the most extensive, independent IPO related research (especially in Asian markets). </p><div class="content-highlight"><p><strong>We made 40 investment calls on IPOs this year, of which 34 had positive ratings on the IPOs and 6 had negative ratings. The 36 stocks (with positive ratings) had share price performances that were up 74.5% on average from their IPO prices. The 6 stocks (with negative ratings) had share price performances that were up only 8% on average from their IPO prices. </strong></p></div>

In this report, we review our IPO investment research in 2020, including the performance of our calls and how we plan to change our process of selection for IPO research in 2021. For those who follow Smartkarma's IPO research, this platform provides one of the most extensive, independent IPO related research (especially in Asian markets). We made 40 investment calls on IPOs this year, of which 34 had positive ratings on the IPOs and 6 had negative ratings. The 36 stocks (with positive ratings) had share price performances that were up 74.5% on average from their IPO prices. The 6 stocks (with negative ratings) had share price performances that were up only 8% on average from their IPO prices. 

Review of Our IPO Research in 2020 & Change in Our IPO Research Process for 2021

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<p>Among the numerous high-profile tech IPOs that are ready to complete their IPOs in the next few weeks, <a href="https://www.smartkarma.com/entities/roblox" target="_blank" data-smartkarma-citation="entities:29697:1" rel="noopener">Roblox (ROBX US)</a> is a stock that could potentially perform really well and there are likely to be a huge amount of institutional and retail interests in this coompany. Roblox provides a cloud-based platform for creating and playing 3D based casual games and experiencing virtual worlds.</p>
<p>Roblox has an excellent combination of strong growth in sales and high levels of free cash flow. This combination of difficult to find among many high flying tech IPOs (especially high levels of free cash flow). As a result, Roblox is likely to be followed closely by both the growth and value oriented investors. </p>
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Among the numerous high-profile tech IPOs that are ready to complete their IPOs in the next few weeks, Roblox (ROBX US) is a stock that could potentially perform really well and there are likely to be a huge amount of institutional and retail interests in this coompany. Roblox provides a cloud-based platform for creating and playing 3D based casual games and experiencing virtual worlds.
Roblox has an excellent combination of strong growth in sales and high levels of free cash flow. This combination of difficult to find among many high flying tech IPOs (especially high levels of free cash flow). As a result, Roblox is likely to be followed closely by both the growth and value oriented investors. 


United States

Unity Software Inc. provides software solutions. The Company offers graphic tools to create, run, and monetize real-time 2D and 3D content for mobile phones, tablets, PCs, consoles, and augmented and virtual reality devices. Unity Software serves customers worldwide.

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Unity Software (U US)

Roblox Valuation Analysis

Our base case valuation for Roblox is $50 billion and a target price of $76.20 per share. This would represent 69% higher than its most recent...

Douglas Kim

Roblox DPO. Going Public Through A Direct Listing Instead Of A Traditional IPO

Roblox is the most innovative company in gaming space and largest social platform for play with online gaming community of 150M+ MAUs worldwide

Andrei Zakharov

2021 IPOs Pipeline Worldwide (Top 100 Companies)

This report is meant to serve as a comprehensive, reference guide for the top 100 IPOs worldwide in 2021 to help clients so that they could get a...

Douglas Kim

Review of Our IPO Research in 2020 & Change in Our IPO Research Process for 2021

In this report, we review our IPO investment research in 2020, including the performance of our calls and how we plan to change our process of...

Douglas Kim

Roblox Corp IPO Preview

In this insight, we provide an IPO preview of the highly anticipated Roblox which provides a cloud-based platform for creating and playing 3D based...

Douglas Kim

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