Econet Media’s Kwesé TV has entered into a partnership with Roku Inc, to launch Kwese Play in South Africa. Now Roku Inc is aiming to raise $204 million through an initial public offering (IPO). The IPO will be underwritten by Morgan Stanley and Citigroup lead the underwriting.
An IPO is when a private company’s shares are offered to the public for the first time. Underwriting, on the other hand, is just a pledge to buy all the unsold shares in an issue like an IPO. So it means Roku is guaranteed of raising the capital they seek to raise. That giant like Morgan Stanley and Citigroup are underwriting the issue gives a lot more confidence to would-be investors.
More: TechZim