Video game company Krafton to launch $ 5 billion plus IPO next week

HONG KONG / SEOUL (Reuters) – Krafton, the company behind the hit video game PlayerUnknown’s Battlegrounds (PUBG), will launch its IPO early next week in what may be Korea’s largest listing South in 11 years, people familiar with the matter said.

The Tencent-backed company aims to raise at least US $ 5 billion in the initial public offering (IPO) by selling 20% ​​of its shares, one said after the Korea Stock Exchange announced that Krafton had obtained preliminary approval for his planned listing.

Official filings to launch the IPO will be made early next week, three people who did not want to be identified because they were authorized to speak to the media told Reuters.

South Korea is experiencing its hottest IPO market on record, and analysts expect at least 20 trillion won ($ 18.4 billion) to be raised in 2021, which would be about four times higher than 2020 levels.

Krafton would be valued at around $ 25 billion based on his current plans, although the final size of the IPO may increase, another person added.

In a statement, Krafton said he could not comment on the details of the IPO before filing a regulatory filing.

At over US $ 5 billion, Krafton would become the largest IPO in South Korea since Samsung Life Insurance’s 2010 float of 4.9 trillion won (US $ 4.4 billion), according to data. ‘exchange.

The price at which the shares will be offered, and therefore the value of Krafton, will be decided once the process is finalized which in the South Korean system can take several weeks.

Battery maker LG Energy Solution said on Tuesday it had sought preliminary approval for a local IPO that could bring in $ 10 billion to $ 12 billion.

(Reporting by Scott Murdoch in Hong Kong and Heekyong Yang in Seoul; Editing by Alex Richardson, Anshuman Daga and Alexander Smith)

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