South Korean video game developer Krafton IPO raises $ 3.75 billion

Players are pictured as they attend the PUBG Global Invitational 2018, the first official esports tournament for the PlayerUnknown’s Battlegrounds video game in Berlin, Germany on July 26, 2018. REUTERS / Fabrizio Bensch

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SEOUL, July 29 (Reuters) – South Korean game developer Krafton Inc (259960.KS) on Thursday announced that it has priced its initial public offering (IPO) at the top of its indicative range to raise 4.3 trillion won ($ 3.75 billion).

Krafton’s shares were listed at 498,000 won against a range of 400,000 to 498,000 won per share, he said.

The Tencent-backed company (0700.HK) behind the hit video game “PlayerUnknown’s Battlegrounds” (PUBG) had cut its IPO target by nearly a quarter in early July after a regulator said it had to revise his documents. Read more

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Despite the target reduction, it is the second largest South Korean IPO, after Samsung Life Insurance (032830.KS) in 2010 valued at 4.9 trillion won.

Executives told a press conference on Monday that its PUBG IP has global visibility and a strong fan base, as evidenced by examples such as the recently launched Battlegrounds Mobile India, regaining the previous user number of the ‘IP in the country despite months of no service, as an old version. was banned.

It plans to expand IP through new games that will launch this year and next, as well as through other forms of media such as short films and animation, CEO Kim Chang said. -han.

Some 70% of the funds raised will be used for global mergers and acquisitions, said CFO Bae Dong-keun, adding that in the past he had been hampered by the high transaction prices in the global game industry, presented for example by Microsoft (MSFT.O) acquisition of ZeniMax Media for 7.5 billion dollars announced last year.

It is expected to be listed around August 10.

($ 1 = 1,145.7800 earned)

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Reporting by Jihoon Lee and Joyce Lee; edited by Jason Neely and Emelia Sithole-Matarise

Our Standards: Thomson Reuters Trust Principles.

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