Roku prices IPO at top of price range, raises Dollars 219 mln

Violet Tucker
September 29, 2017

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Roku priced its initial public offering at $14 a share, giving the maker of streaming video players a valuation of $1.3 billion, according to a source familiar with the matter.

Now it has to compete with devices from Amazon, Google, and Apple. Shares opened for trading at $15.78 a piece.

Roku will issue and sell 9 million shares of Class A common stock and the selling stockholders will sell an additional 6,668,000 shares of Class A common stock, totaling 15,668,000 shares in all.

"They're like the Switzerland of the streaming box world", Dawson said.

With all three offering boxes for streaming videos features the most popular apps such as Hulu and Netflix. Roku claims to have just over 15 million active accounts, which made just under $400 million in revenue in 2016.

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Roku is expecting to price its IPO in the $12 to $14 range and raise roughly $220 million. The company makes streaming sticks that allow you to watch streaming video on your television.

Roku's S-1 filing revealed growing revenues, as well as a shift towards advertising-based income streams.

Roku's financial growth also has been impressive. To date it has raised $200 million in funding.

Roku is actually losing money on its hardware even though it generates such a large percentage of the company's revenue. But, during the first half of this year, Roku's reported net loss of $24.2 million narrowed from $33.2 million in the first half of 2016.

Roku said it generated $199.7 million in revenue in the six month ended June 30. Blue Apron shares have slumped almost 40% since it went public in June.

The company's stock market debut comes on the heels of its initial public offering confirmation earlier this month. "We're seeing a lot of "me too" ideas".

Other reports by Guamnewswatch

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