AAA Linekong starts new game with $93.5m IPO

Linekong starts new game with $93.5m IPO

China-based mobile game developer Linekong has closed an initial public offering on the Hong Kong Stock Exchange at HK$724.9m ($93.5m), issuing 74 million shares at HK$9.80 each.

Linekong originally filed for a HK$1.45bn IPO in September 2014, only to delay the offering in December for undisclosed reasons, halving the size of it in the process.

Founded in 2007, Linekong is best known for mobile role playing game “The Legend of King”. It has raised $115m across three funding rounds from investors including IDG Capital Partners, a China-focused corporate venturing fund affiliated with US-based media company International Data Group.

The company’s backers also include Orchid Asia, SAIF Partners, Starwish Global, Profitable Century International, North Light Venture Capital and New Enterprise Associates.

Linekong has not listed its majority shareholders in the official filing. Taiwan-based insurance provider Fubon Life Insurance will hold a 6.4% stake and ABG II-Line K a 3.2% share.

The proceeds will be used to develop and purchase intellectual property, license more games, acquire and invest in other gaming businesses, promote the company’s own distribution platform and expand its business in South Korea.

Citi, Macquarie and CCB International are acting as joint global coordinators, joint bookrunners and joint lead managers. The over-allotment option is worth an additional $13.65m.

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