PUBG-maker Krafton seeks to raise over $5b in Korea IPO

Photo: Reuters

Krafton, the company behind blockbuster video game PlayerUnknown’s Battlegrounds (PUBG), will launch its IPO early next week in what could be South Korea’s largest listing in 11 years, people familiar with the matter said.

The Tencent-backed company aims to raise at least $5 billion in the initial public offering (IPO) by selling 20% of its shares, one said after the Korea Exchange announced that Krafton had preliminary approval for its planned listing.

Official filings to start the IPO will be made early next week, three people who did not want to be identified as they were authorised to speak to the media, told Reuters.

South Korea is experiencing its hottest IPO market on record and analysts expect that at least 20 trillion won ($18.4 billion) will be raised in 2021, which would be about four times above 2020 levels.

Krafton would be valued at around $25 billion based on its current plans, although the final size of the IPO could increase, another person added.

In a statement, Krafton said that it could not comment on details of the IPO before it lodges a regulatory filing.

At $5 billion-plus, Krafton would become the biggest IPO in South Korea since the 4.9 trillion won ($4.4 billion) float of Samsung Life Insurance in 2010, exchange data shows.

The price at which shares will be offered, and therefore Krafton‘s value, will be decided once the process is finalised which, under the South Korean system, can take several weeks.

Battery maker LG Energy Solution said on Tuesday it had applied for preliminary approval of a local IPO that reportedly could raise $10 to $12 billion.

Reuters

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).   

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  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.