IPO news: Roku IPO to test investor appetite for tech floats

Streaming device company looks to raise up $100m in upcoming IPO

IPO news: Roku IPO to test investor appetite for tech floats

Streaming device company Roku is looking to raise up to $100 million in an upcoming public offering (IPO). The Roku IPO will come amid a flurry of activity on the US market, which will also see Alibaba-backed logistics company Best Inc tap investors for about $1 billion.

TV streaming pioneer Roku said in a filing to the US Securities and Exchange Commission this month that it was planning to list on the NASDAQ, appropriately under the ticker symbol ‘ROKU’. CNBC reports that the company is looking to raise up to $100 million in the upcoming IPO.

The company, founded in 2002, has benefitted from the growing popularity of platforms like Netflix, which allow people to opt not to pay for cable television. Roku cited an April comScore report as showing that 51 million US homes have used over-the-top content (OTT), with OTT having a 54-percent reach among homes with WiFi. The company noted that although traditional live TV still represents the majority of hours viewed by consumers, it declined year-over-year from 2015 to 2016 among adults by 1.5 percent on a Nielsen’s ratings basis, while streaming hours continue to grow both on an absolute basis as well as on a percentage of total hours viewed basis. 

“We believe all TV content will be available through streaming,” Roku said in the filing. The company, however, cautioned that for all its history it had experienced net losses and negative cash flows from operations. As of June 30, the company had an accumulated deficit of $244 million and for the six months ended June 30, it experienced a net loss of $24.2 million. 

The Roku IPO comes as Best recently kicked off a roadshow for its own upcoming IPO. The US IPO calendar further includes newly-formed mortgage real estate investment trust Tremont Mortgage Trust which is hoping to raise $90 million on the NASDAQ.  

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