Krafton, the South Korean company behind the blockbuster video game “PlayerUnknown’s Battlegrounds”, said on Wednesday that its IPO will raise up to 5.6 trillion Swedish kronor (approximately 36,730 crore) at the top of the indicative range, which will be the country’s record.
Krafton stated in a regulatory document that it expects to issue 10 million shares, including 7 million new shares and 3 million existing shares, with an indicative range of 458,000 SEK (about 30,000 rupees) to 557,000 per share. Swedish Krona (approximately Rs 36,500).
At the top of the range, this will be the largest listing in South Korea, surpassing Samsung Life’s 2010 4.9 trillion Swedish Krona (approximately Rs 32,170 crore) IPO.
The price is expected to be determined in the next few weeks.
Krafton’s online multiplayer war game PUBG has sold 25 million copies on PCs and consoles, making it one of the fastest selling games since its launch in 2017.
Krafton plans to release two new games based on PUBG Intellectual Property (IP) this year, including mobile games “PUBG: New State” and “Battlegrounds Mobile India” for the Indian market.
The company also expanded into web-based cartoons, movies, and animations, and developed a deep learning artificial intelligence business model for consumers.
The company reported revenues of 1.67 trillion Swedish kronor (approximately Rs 109.7 billion) in 2020, and its operating profit more than doubled from the previous year to 774 billion Swedish kronor (approximately Rs 50.8 billion).
Mirae Asset Securities is the chief advisor for the IPO, while Credit Suisse, NH Investment & Securities, Citigroup and JPMorgan Chase are also advisors.
South Korea is experiencing the hottest IPO market ever, and analysts expect to raise at least SEK 20 trillion (approximately Rs 13,134 crore) in 2021, or about four times higher than the level in 2020.
Choi Jong-kyung, an analyst at Heungkuk Securities, said: “This year, a large number of KOSPI’s new listings are concentrated in market values ranging from trillions of won to tens of trillions of won, which is unprecedented.”
© Thomson Reuters 2021