Japan-based instant messaging app developer Line has filed for an initial public offering in Japan that would value the company at more than ¥1 trillion ($9.8bn), Reuters reported yesterday.
Launched in 2011, Line offers a mobile messaging service that allows users to exchange text messages and video, along with a free call service. Though it services Japan, Line operates as a subsidiary of Korea-based internet portal Naver.
The company has not disclosed how large a stake it would sell in an IPO. Line filed on the Tokyo Stock Exchange two weeks ago, a source told Reuters. It is also considering both a dual listing in Japan and the US, and a listing solely on the New York Stock Exchange.
Line’s revenues for the first three months of 2014 totalled ¥14.6bn ($143.5m), a threefold increase year on year.
A person familiar with the matter told Reuters that Naver will likely seek to sell preferred shares in order to maintain control of Line, while Line itself favours the sale of ordinary shares to increase interest among Japanese retail investors.
The IPO will be the latest example of the strong growth in the online messaging sector. The biggest deal was Facebook’s $19bn acquisition of WhatsApp in February, but Viber was bought for $900m by Rakuten the same month before Tango raised a $280m round in March.