South Korean video game company Krafton announced that its initial IPO offering is likely to raise 4.3 trillion won ($3.8 billion), marking it the second-largest Korean debut. According to a filing, The PUBG-maker set the price for its 8.65 million share sale at 498,000 won apiece, at the top of a revised range.
Krafton said the offering was subscribed 243 times by institutional investors after a regulator requested the company to revise its IPO registration statement last month following concerns that its valuation was too high.
In mid-June- Krafton had announced plans to raise as much as 5.6 trillion won (around $5 billion) selling over 10 million shares at 458,000 won to 557,000 won per share. This was expected to be South Korean’s biggest IPO ever. Krafton had applied for preliminary approval in April.
South Korea-based PUBG-maker is scheduled to start trading on the Korea Exchange on August 10.
PUBG, which accounted for nearly all of Krafton’s sales, PUBG Mobile surpassed $5.1 billion in lifetime player spending as of April as it accumulated $2.7 billion in 2020 alone.
Krafton said in the filing that it plans to allocate the most of its funding for global mergers and acquisitions. The company also aims to become an entertainment company by offering animated movies and other entertainment contents.
“There might be a question mark whether Krafton can well create movies, short films or animation but we must expand into other various media products because that is what customers want and where the media environments are headed to,” Chang Byung-Gyu, the founder and chairman of Krafton, said on Tuesday.