On Wednesday, Roblox will go public through a direct listing on the New York Stock Exchange.

The reference price for Roblox is $45 a share. The company has about 652 million shares outstanding, which would make the market capitalization about $29.3 billion. About 199 million shares will be available to trade tomorrow under the ticker RBLX. The $45 reference price doesn't mean that the shares will begin trading around that price when the market opens.

Direct listings have been growing popular for companies looking to go public. In recent years, Palantir Technologies, Asana, Slack Technologies, and Spotify Technology all used direct listings in their public offerings. In a traditional direct listing companies don't raise capital. However, this rule was modified in December by the SEC that now allows a company to raise capital in the process.

Roblox, a popular children's game that features block-like characters, was founded in 2004. The company has been growing exponentially since its inception with millions playing the game daily. On average, Roblox has 37.1 million players daily.

The company has not turned out a profit so far. In 2020, the company reported losses of $253.3 million, up from $71 million in 2019. Revenue increased 82 percent to $923.9 million.

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