Krafton’s $5 bn IPO could be delayed for up to two weeks, sources said

UPDATE (July 1, 2021): Krafton cuts IPO target to $3.8 bn in revised registration statement

PUBG-maker Krafton announced today that it’ll revise its IPO registration statement and resubmit the application due to the Financial Supervisory Service (FSS)’s request, which two people close to the company said could delay the South Korean developer’s $5 billion listing for two weeks. 

“Krafton plans to revise our IPO registration statement in response to the Financial Supervisory Service (FSS)’s request,” Krafton told Reuters. 

One of the sources, who requested to remain anonymous, said that FSS was reviewing the Krafton’s listing documents, however, had not identified a major problem.

In its regulatory filing on last Friday, Krafton said that the financial regulator asked the game developer to resubmit its IPO registration statement as it’s ‘’fallen into one of three possible categories: not have had a proper format; contained false information or an omission of important facts; or included unclear statements that might undermine investors’ reasonable judgment or lead to serious misunderstanding,’’ Reuters reported. 

Krafton’s $5 billion listing, which is expected to be South Korean’s biggest IPO, was set to take place on July 22. 

Through the listing, the PUBG-maker plans to sell over 10 million shares at 458,000 won to 557,000 won per share, which could value the game developer at $25 billion. 

The company has 3 months to resubmit its application. Otherwise, the previous IPO registration statement will be deemed withdrawn in accordance with local regulations.