Shares in video-streamer Roku soar after its IPO raises $219m
Shares in Roku rocketed last Thursday after the company's initial public offering raised $219m. The California firm makes sticks and boxes that enable users to watch Netflix, Hulu and other streaming-video options on their TVs. Roku has the biggest share of the streaming-gadget market, despite competition from Amazon, Google and Apple. Shares were initially priced at $14 – the top of the company's expected range – valuing it at $1.3bn but rose to over $21 in afternoon trading. The company makes most of its revenue from selling streaming players; however, it is not profitable, having made $244m of losses since 2002.

NEW YORK -- Shares of Roku, an early player in streaming-video gadgets, soared Thursday after its initial public offering of stock raised US$219 million.

The shares priced at $14 each, the top of the company's expected range, suggesting strong demand from investors and valuing the company at $1.3 billion. The shares rocketed to more than $21 in Thursday afternoon trading, a gain of over 50 per cent.

The Los Gatos, California, company is known for its boxes and sticks that let users watch Netflix, Hulu and the growing universe of streaming-video options on their TVs. It has the biggest share of the streaming-gadget market, but has deep-pocketed competitors in Amazon, Google and Apple.

Most of Roku's revenue comes from sales of its streaming players, but it's seeking to capitalize on its "platform" by building its business of showing ads to users, whether on its home screen or inside video apps.

The company is unprofitable and has amassed $244 million in losses since it was founded in 2002.