PUBG Developer Krafton Files Potential $5B IPO – The Esports Observer
South Korean game developer and publisher Krafton filed for an initial public offering (IPO) on the Korea Exchange. In a regulatory filing, the parent company of PlayerUnkown’s Battlegrounds (PUBG) developer PUBG Corp said that it’s expecting to offer 10.06M shares of its common stock (20% of the company’s total common stock issued post-IPO) at an anticipated price range of ₩458,000 KRW ($409 USD) to ₩557,000 ($498) per share.
With the currently anticipated price range, Krafton’s offering size is listed between ₩4.6T ($4.12B) and ₩5.6T ($5.01B), which would put Krafton at a market capitalization between $20.6B and $25.1B. The latter market capitalization would see Krafton almost match Fortnite maker Epic Games’ latest equity valuation of $28.7B. If Krafton’s offering size exceeds $4.38B, it would be the biggest IPO on a South Korean stock exchange, surpassing the 2010 IPO of Samsung Life Insurance.
In 2020, Krafton generated net revenues of ₩1.67T ($1.49B), with revenues from PUBG – which has sold more than 25M copies since its launch in 2017 – contributing more than 95% of the group’s total revenues. Compared to 2019, the company doubled its 2020 net income to ₩556M ($497M).
Pre-IPO, Krafton’s largest shareholders are its founder and chairman Chang Byung-gyu with a 16.43% stake and Tencent with a 15.52% stake via its investment vehicle IMAGE FRAME INVESTMENT (HK) LIMITED.
The IPO will be executed by lead underwriter Mirae Assets Securities and additional underwriters Credit Suisse Securities, NH Investment & Securities, Citigroup Global Market Securities, JP Morgan Securities, and Samsung Securities.
The IPO’s subscription and announcement of the final subscription price date is July 14. The allocation date will officially be announced on July 19, but is already anticipated to be July 22.
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