Line, the Japan-based messaging platform owned by South Korea-based internet company Naver, is set to raise up to $1.05bn in its initial public offering next month, Reuters reported today.
As reported last week, the company will conduct a dual listing in New York and Tokyo. Line is aiming to offer 22 million shares in the US and 13 million shares in Japan, priced at ¥2,800 ($26.30) each.
Line has arranged an over-allotment option for up to 5.25 million in additional shares.
The flotation would value the company at $5.5bn, making it Japan’s largest IPO of 2016 so far. The valuation is an increase over the company’s target of $2bn to $3bn, though only half of its initial goal of $10bn when Line first filed for an IPO in Tokyo in 2014.
Line then first delayed the offering until 2015 but in August 2015 decided to postpone the flotation yet again until at least spring 2016.
Line was spun out of Naver in 2000 and originally called Hangame Japan Corporation. In 2013, the company rebranded to Line Corporation after the name of its key product, a messaging service that is best known for letting users send digital stickers to each other.
The company’s drop in valuation is reportedly due to its struggle to attract more users. Although it claims more than 218 million monthly active users, the number constitutes an increase of just 13 million new users over the past year.
Line’s userbase is dwarfed by internet company Facebook’s two competing services, Messenger and WhatsApp, which count 900 million and a billion users, respectively.
Line plans on using proceeds for strategic investments, including mergers and acquisitions, and to repay outstanding debt.
Morgan Stanley, Goldman Sachs, JPMorgan and Nomura are managing the initial public offering.