Roblox to delay IPO as affirm weighs its timing

Roblox Corp. told employees it would delay its initial public offering until next year as another IPO candidate Affirm Holdings Inc. weighs a similar move, according to people familiar with the matter.

Affirm, a provider of installment loans to online shoppers, had been trying to go public this month but its plans could now slip until next year because it’s still working on clearance from the U.S. Securities and Exchange Commission, according to the people, who asked not to be identified because the matter isn’t public.

There’s still a window for the San Francisco-based company to launch the share sale this year, two of the people said. No final decision has been made and the timing could change, they added.

For Roblox, the online video game platform is seeking improvements to the process as it relates to employees, shareholders and future investors, according to a company-wide memo by Chief Executive Officer David Baszucki that was seen by Bloomberg.

“As such, we’ve decided to take this opportunity to work with our advisors to see how we can make such improvements,” he said, without being more specific on the changes he’s seeking. “That work will continue over the holidays and, as a result, we expect our listing will take place early next year.”

Both companies have declined to comment.

San Mateo, California-based Roblox filed for its IPO last month, aiming to capitalize on a pandemic-fueled sales surge and the growing popularity of its platform.

Affirm also filed to go public in November, and the delay from the SEC comes as it joined a wave of consumer-facing technology companies planning to list by the end of the year. Airbnb Inc. and DoorDash Inc. soared in their trading debuts last week as the S&P 500 Index reached a new high.

More than 6,500 merchants use Affirm’s platform, including home exercise company Peloton Interactive Inc. Affirm has also been expanding its business, announcing plans earlier this month to buy Canada’s PayBright for C$340 million ($266 million). The acquisition may have contributed to the delayed response from the SEC, one of the people said.

Dow Jones earlier reported the IPO delays.