Krafton Inc, the South Korean company behind blockbuster computer game “PlayerUnknown’s Battlegrounds”, said on Wednesday its Initial public offering would rise up to 5.6 trillion won ($5 billion), which would be a record for the country.
Tencent-backed Krafton said in a regulatory filing it expected to offer 10 million shares, or 7 million new shares and 3 million existing shares, at a characteristic scope of 458,000-557,000 won for every share.
At the highest point, this would be South Korea’s biggest listing, beating Samsung Life insurance’s 4.9 trillion won Initial public offering in 2010.
The pricing is expected to be decided in the coming weeks, with listing expected in July.
Krafton’s online multiplayer war-battling game PUBG has sold 25 million copies on PC and consoles, becoming one of the fastest selling games since its launch in 2017.
Chinese gaming and online media monster Tencent is presently Krafton’s second-biggest investor with a 15.35% stake through an investment vehicle, as per regulatory filing.
Krafton intends to deliver two new games this year dependent on the PUBG licensed innovation (IP), including versatile game “PUBG: New State” and “Battlegrounds Mobile India” focusing on the Indian market.
The company is additionally extending to areas, for example, electronic cartoons, films and animation, and fostering deep learning, simulated intelligence plan of action focusing on customers.
It posted 1.67 trillion won income in 2020, and its working profit dramatically increased from the earlier year to 774 billion won.
The company assessed its valuation at 35 trillion won, at a price- to-earnings ratio of 45.2, which is marginally lower than South Korean game industry peers NCSoft and Netmarble as indicated by its filing.
Mirae Asset Securities is lead advisor for the Initial public offering, while Credit Suisse, NH Investment and Securities, Citigroup and JP Morgan are additional advisors.
South Korea is encountering its most sizzling Initial public offering market on record with experts projecting 20 trillion won to be brought up in 2021, or around multiple times over 2020 levels.
“This year is exceptional in the centralization of immense new listings on the KOSPI with market capitalizations that reach from trillions of won to tens of trillions of won,” said Choi Jong-kyung, expert at Heungkuk Securities.
