Popular video game platform Roblox announces public offering that could value the company at $8 billion

• Video game platform Roblox filed confidentially for a public offering, according to a Monday press release.
• The number of shares to be sold and their price range has not yet been decided.
• The offering could peg Roblox’s valuation as high as $8 billion, Reuters reported earlier this month. That would double the $4 billion valuation it received in a February funding round.
• Roblox hadn’t yet determined whether it wants to go public through a traditional IPO or a direct listing, according to the report.
• Visit the Business Insider homepage for more stories.

Popular gaming platform Roblox announced Monday it filed confidentially for a public offering.

The company previously submitted a draft registration with the Securities and Exchange Commission to sell shares of its common stock, according to a press release. The number of shares to be sold and their price rage has not yet been decided.

Roblox’s platform offers users several different games across gaming consoles and mobile devices. Though the platform itself is free, users can spend money on in-game items.

The company announced in July it has more than 150 million monthly active users. Roblox also expects to rake in more than $250 million this year, up from $110 in 2019.

Read more: The global investment strategist at a $44 billion ETF shop explains why the pandemic-fueled boom of online retail is set to accelerate — and shares 5 stocks to watch other than Amazon ahead of its Prime Day

Reuters first reported Roblox's plans to go public on October 1. The company could target a valuation as high as $8 billion depending on market demand, according to the report. Roblox was last valued at $4 billion in February after raising $150 million in a Series G funding round.

Roblox hadn't decided whether to make its public-market debut through a traditional initial public offering or a direct listing as of the early October report.

The latter option has grown in popularity in recent years. Direct listings allow firms to begin trading publicly without selling new shares and watering down the stock's value. Funds aren't raised in such listings.

Now read more markets coverage from Markets Insider and Business Insider:

Mohamed El-Erian says whipsawing markets are moving first and finding justification later

Tesla's 425% surge this year ignores fundamentals more than any other stock rally in history, Needham says

'The largest financial crisis in history': A 47-year market vet says the COVID-19 crash was merely a 'fake-out sell-off' — and warns of an 80% stock plunge fraught with bank failures and bankruptcies