Krafton, a South Korea-based video game publisher backed by gaming and internet group Tencent, has filed for an initial public offering (IPO), Reuters reported yesterday, citing an announcement from the Korea Exchange.
The company was valued at KRW20 trillion ($18bn) in off-exchange trading yesterday, while the IPO is set to be one of the largest in the country this year, unnamed local sources told Reuters.
Founded by computer game studio Bluehole as a holding group in 2018, Krafton owns multiple brands including Bluehole Studio, PUBG Studio and Striking Distance Studios. Its lead product, PlayerUnknown’s Battlegrounds, has about 55 million daily users in countries outside China and has sold 70 million copies.
Tencent invested $61.5m in Bluehole in 2017 and later returned to make a $468m secondary investment the following year to increase its stake in the company to a reported 11.5%.
Krafton founder Chang Byung-gyu holds the largest stake in the company, with 16.4%, followed by Tencent’s investment arm with 15.5%, according to data seen by Reuters in a late 2020 stock exchange filing.
Mirae Asset Daewoo is lead adviser for the listing and is being joined by Citigroup Global Markets, Credit Suisse, JP Morgan, Korea Investment & Securities and NH Investment & Securities.
