• Tencent-backed outfit behind video game PlayerUnknown’s Battleground
• Sale will be second-largest South Korean IPO ever after Samsung Life
South Korean game developer Krafton Inc announced on Thursday that it has priced its initial public offering (IPO) at the top of its indicative range, looking to raise 4.3 trillion won ($3.75 billion).
The Tencent-backed company behind blockbuster video game PlayerUnknown’s Battlegrounds (PUBG) had cut its IPO target by nearly a quarter in early July after regulators said it needed to revise its filings.
Despite the target cut, it will be the second-largest South Korean IPO ever, after Samsung Life Insurance’s 2010 float worth 4.9 trillion won.
Also on AF: China Regulators Scramble to Ease Investor Fears Over Crackdown
Krafton shares were priced at 498,000 won compared with a range of 400,000-498,000 won per share, it said.
Executives said in a press conference on Monday that PUBG has global visibility and a strong fan base.
It plans to expand on the platform through new games to be launched this year and next, as well as through other media forms such as short films and animations, CEO Kim Chang-han said.
Some 70% of the funds raised will be used for global mergers and acquisitions, CFO Bae Dong-keun said, adding that in the past it had been hindered by steep price tags for deals in the global gaming industry – showcased for instance by Microsoft’s acquisition of ZeniMax Media for $7.5 billion announced last year.
It is expected to list around August 10.
- Reporting by Reuters
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