South Korean gaming company Krafton Inc. is exploring an initial public offering (IPO) next year, according to a report in South Korean business publication Pulse (by way of Daniel Ahmad, senior analyst at Niko Partners). Krafton owns PUBG Corporation, the developer of popular battle royale games PUBG and PUBG MOBILE.
Krafton has invited “securities companies” in South Korea and abroad to submit IPO proposals by Oct. 12, according to the report, citing investment bank industry sources. The plan is to aim for an IPO early next year on the Korea Composite Stock Price Index (KOSPI).
Companies under the Krafton umbrella include Delusion Studio, Bluehole, PUBG Corp., En Mass Entertainment, and mobile game developers Pnix and Redsahara. In the first half of 2020, the Krafton Game Union, which currently consists of 23 companies, generated revenues of ₩887T KRW ($759M USD) and ended the period with a net income of ₩405T ($346M).
Krafton’s largest shareholder is Chairman Chang Byung-gyu, who controls a 17.4% stake. Chinese conglomerate Tencent Holdings is the second-largest stakeholder, with a 13.2% stake via its Hong Kong subsidiary Image Frame Investment. Other stakeholders include IMM Investment (6.9%), KNET Investment Partners (5.7%), Premier Partners, and Altos Ventures.
Tobias Seck contributed to this story.
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