Krafton, the company behind PlayerUnknown’s Battlegrounds, or PUBG, the battle royale shooter game, is planning a $5 billion IPO.
Krafton, located in South Korea, aims to sell more than 10 million shares at a price ranging from $409.78 to $498.36 per share, according to Bloomberg, which could help the business fund big plans to become a major player in the fast-growing game sector. If the business can persuade investors, Krafton’s initial public offering will be worth $25 billion, which is comparable to Epic Games’ latest valuation of $28 billion for Fortnite and Unreal Engine. This would be the largest IPO in South Korea, surpassing Samsung Life Insurance’s 4.9 trillion won offering in 2010.
Since its release in 2017, Krafton’s online multiplayer war-fighting game PUBG has sold 25 million copies on PC and consoles, making it one of the fastest-selling games of all time. It plans to release two additional games based on the PUBG intellectual property (IP) this year, including a mobile game called “PUBG: New State” and a game called “Battlegrounds Mobile India,” both aimed towards the Indian market.
The company is also branching out into sectors including web-based cartoons, movies, and animation, as well as establishing a deep learning, AI-based consumer business model.
The company is also branching out into sectors including web-based cartoons, movies, and animation, as well as establishing a deep learning, AI-based consumer business model. In 2020, it generated 1.67 trillion won in revenue, with an operating profit of 774 billion won, more than doubling from the previous year.
The Krafton IPO is being advised by Mirae Asset Securities, as well as Credit Suisse, NH Investment & Securities, Citigroup, and JP Morgan.
According to investment bank Drake Star Partners, the game sector has already established a record for the number of agreements made in a year, with more than $49 billion in declared deals across 527 investments, acquisitions, and public offerings in the first five months of 2021. That’s more money than will be spent on games in the entire year of 2020. Companies announced 142 acquisitions worth a total of $21 billion between January and May, according to Drake Star Partners. A total of $4.2 billion has been raised by three special purpose acquisition companies (SPACs). Private game firms have raised $4.2 billion from venture capitalists and strategic investors in 314 minority financings.
Pricing will be established in the coming weeks, with a July listing anticipated. Since its release in 2017, Krafton’s online multiplayer war-fighting game PUBG has sold 25 million copies on PC and consoles, making it one of the fastest-selling games of all time. According to a regulatory filing, Tencent, a Chinese gaming and social media company is Krafton’s second-largest shareholder, holding a 15.35 percent ownership through an investment vehicle.
Pricing will be determined in the coming weeks, with a listing expected in July. PUBG, Krafton’s online multiplayer war-fighting game, has sold 25 million copies on PC and consoles since its release in 2017, making it one of the fastest-selling games of all time. Tencent, a Chinese gaming and social media business is Krafton’s second-largest shareholder, with a 15.35 percent stake held through an investment vehicle, according to a regulatory filing.
