U.S. gaming platform Roblox Corporation said on Monday it has confidentially submitted paperwork with the Securities and Exchange Commission to go public.
Reuters reported earlier this month that Roblox was seeking to go public early next year, a move that the company expects would double its recent valuation of $4 billion.
Roblox did not immediately respond to a Reuters request for comment on whether it would choose the traditional initial public offering or direct listing route to go public.
In a direct listing, no new shares are sold and underwriting banks do not weigh in on the pricing, unlike in an IPO. By not selling new shares, companies do not dilute the ownership stakes of existing shareholders and the public listing allows current investors to sell shares easily.
Roblox’s plans to go public come at a time when demand for video games and at-home entertainment has surged in the U.S. as consumers continue living under lockdown due to the COVID-19 pandemic. Streaming service provider fuboTV Inc, which went public last week, jumped 10% in its market debut.
U.S. consumer spending on video gaming hit a record $11.6 billion in the second quarter, up 30% from the year-ago period, according to research firm NPD Group.
Roblox’s platform offers a host of different games across mobile devices and games consoles. The company operates a freemium model in which users can make in-game purchases.