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Krafton’s IPO subscription has met with muted response from private investors

SEOUL, Aug. 3 (Yonhap) – The IPO of video game developer Krafton Inc. has generated lukewarm reactions from retail investors, whose IPO subscription deposits are now at 3.1 trillion won (2.7 billion US dollars) ) are 11 a.m., announced its IPO manager on Tuesday.

On the last day of the two-day subscription, the developer of the world’s hit “PlayerUnknown’s Battlegrounds” (PUBG) said that retail investors could potentially make additional deposits to subscribe to one of the biggest IPOs later that afternoon.

Krafton’s IPO subscription for retail investors ends at 4 p.m.

Krafton lowered its IPO price range to 400,000 won and 498,000 won, from the previous range of 458,000 won to 557,000 won, as tax authorities demanded a revision of their plan amid overvaluation concerns.

The company set its IPO price at 498,000 won and had raised 4.31 trillion won through the IPO by 11:00 a.m.

The IPO price puts Krafton’s valuation at 24.3 trillion won, outperforming the market caps of video game compatriots like NCSOFT Corp. with 18.4 trillion won and Netmarble Corp. with 12.2 trillion won.

Scheduled for August 10, the listing is expected to be one of the largest ever on the local stock exchange. Samsung Life Insurance Co. holds the record for its 4.89 trillion won IPO in 2010.

With the launch of the new in-house mobile phone game “PUBG: New State” in September of this year and the horror game “Callisto Protocol” next year, the company plans to expand its video game portfolio.

Subscription deposits from retail investors are smaller than other major IPOs this year, such as SK IE Technology Co. and SK Bioscience Co., which raised 43.8 trillion won and 33.9 trillion won in subscription deposits, respectively.

Kakao Bank, one of the country’s three internet-only banks, raised 58.3 trillion won last week in its two-day retail subscription.

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