Roku Goes Public, Raising $252 Million
Streaming TV provider Roku launched its initial public offering yesterday, raising $252 million in an IPO that valued the company at $2 billion. Its $14 offering price soared to $15.75 at opening and kept climbing to $23.50 at the close.
Roku, Inc. (NASDAQ: ROKU), was founded in 2002 by Anthony Wood, inventor of the personal video recorder. Roku produces the Roku TV and Roku player, which provides an easy way to stream videos to HD, 4K, HDR, or even older TVs. According to the company, it has 14 million monthly active accounts, which streamed three billion hours of video and music during the first quarter of 2017.
In its announcement, the company said the principal purposes of the IPO were to increase its financial flexibility by creating a public market for its Class A common stock. Roku intends to use the net proceeds from the offering primarily for general corporate purposes, including working capital, research and development, sales and marketing activities and capital expenditures.