Roku aims to raise $219 million in IPO

Roku Inc., the maker of devices and software for streaming video, aims to raise as much as $219 million in its initial public offering.

The company and selling shareholders are marketing 15.7 million shares for $12 to $14 apiece, with 9 million shares being sold by Roku, according to a filing Monday with the U.S. Securities and Exchange Commission. The company said it plans to use the proceeds for general corporate purposes, including research and development and marketing.

Menlo Ventures, the biggest current holder of Roku, is selling 6 million shares. The firm will still hold 30 percent of the voting power after the offering, the filing said.

Roku, based in Los Gatos, California, was an early mover in what’s now a crowded market of home devices and streaming tools. Technology giants including Apple Inc., Alphabet Inc.’s Google and Inc. are now focusing intently on the space. Roku hasn’t turned a profit since it started in 2002, according to the filing.

Roku made $11.22 in average revenue per user in the four quarters through June 30, compared with $9.28 at the end of 2016, according to the filing. The company said its growth strategy is to increase the number of active accounts and the amount of revenue per user — money the company makes when consumers order a streaming-video service, or through advertising deals. Ads and subscription-revenue share make up about 40 percent of sales.

Morgan Stanley and Citigroup Inc. are leading the offering. The company, which is offering Class A shares, will be listed on the Nasdaq Global Select Market under the symbol ROKU.

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Roku aims to raise $219 million in IPO