(Bloomberg) – Roblox Corp. told employees it would postpone its initial public offering until next year as another IPO candidate, Affirm Holdings Inc., contemplates a similar move, according to people familiar with the matter.
Affirm, an installment loan provider for online shoppers, had tried to go public this month, but his plans could now drag until next year as he is still working on Securities clearance. and Exchange Commission of the United States, according to people, who requested unidentified because the matter is not public.
There is still a window for the San Francisco-based company to start selling shares this year, two people said. No final decision has been made and the timeline could change, they added.
For Roblox, the online video game platform seeks to improve the process when it comes to employees, shareholders and future investors, according to a company-wide note from CEO David Baszucki that was seen by Bloomberg.
“As such, we have decided to take this opportunity to work with our advisors to see how we can make such improvements,” he said, without being more specific about the changes he is looking for. “This work will continue over the holidays and therefore we expect our registration to take place early next year.”
Both companies declined to comment.
Video: Why Roblox and Affirm are delaying their IPOs (CNBC)
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Roblox, based in San Mateo, Calif., Filed for an IPO last month, with the aim of capitalizing on increased sales fueled by a pandemic and the growing popularity of its platform.
Affirm also filed to go Public in November, and the SEC’s delay comes as it joins a wave of consumer-oriented tech companies that plan to register by the end of the year. Airbnb Inc. and DoorDash Inc. soared in their trading debuts last week as the S&P 500 index hit a new high.
Over 6,500 merchants use the Affirm platform, including home exercise company Peloton Interactive Inc. Affirm has also grown its business, announce plans earlier this month to buy PayBright from Canada for C $ 340 million ($ 266 million). The acquisition may have contributed to the SEC’s delay in responding, one of the people said.
Dow Jones earlier reported the delays in the IPO.
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