Roku now looking to raise up to United States dollars 219 mln during IPO

Roku CEO Anthony Wood

Roku, the digital streaming business, is looking to raise about $204 million when it goes public later this month.

At the low-end, Roku's share of the pot could come in at just $108 million - close to the $100 million first reported when the company first filed to go public earlier this month. According to a new filing with the US Securities and Exchange Commission, the company and existing shareholders will sell about 15.7 million shares for United States dollars 12-14 per share. That's because that number is a placeholder and often changes. The new price range could push the company's valuation up to United States dollars 1 billion, Bloomberg noted.

The company has raised over $200 million in funding since 2008.

Some of Roku's direct rivals include Apple TV, Amazon Fire TV and Chromecast.

Menlo Ventures, the biggest current holder of Roku, is selling 6 million shares. Menlo Ventures is the largest stakeholder, owning 35.3 percent of the company prior to the offering, and Fidelity owned 12.9 percent.

Currently, Roku obtains the majority of its revenue from the sale of its streaming players, however, is set to be increasing its efforts to bring in funds from advertising, commissions from subscriptions and other transactions made through its devices.

Roku has told the SEC that it generated $199.7 million in revenue during the first half of this year, up 23% from $162.3 million during the same time last year.

In America, 38.9 million Americans are utilising Roku-equipped devices. The company, which is offering Class A shares, will be listed on the Nasdaq Global Select Market under the symbol ROKU.

Morgan Stanley and Citigroup Inc. are leading the offering.



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