Retail investors can now bid for shares of one of South Korea's biggest game makers,… Krafton.
The public subscription for the game developer behind global blockbuster 'PlayerUnknown's Battlegrounds' opened for two days at 10 AM on Monday.
"Krafton has created a new genre called 'openworld battle royale'. Since 2017, this sensation has led to the sale of 75 million copies of the console and PC versions of PUBG, and it ranks 5th for the top-selling games of all time."
Ahead of its debut on the benchmark KOSPI next Tuesday, Krafton has priced some 5.6 million new shares at 498,000 won or around 432 U.S. dollars each.
That is at the high end of its proposed price range for its initial public offering.
During the subscription, 25 percent of the new shares that the company is issuing will be distributed equally between those who have made at least the minimum deposit at three brokerage houses.
To reserve a single share, investors have to deposit at least half the price of 10 shares.
Some critics say the shares are overpriced because they put Krafton's valuation at around 21 billion dollars,… which is more than NC Soft, the biggest game developer listed in South Korea.
"I didn't participate in the subscription for Krafton because of the relatively low competition rate among institutional investors. Also I thought the IPO price is much higher than its truth worth."
"The public subscription for Krafton is the last time that retail investors in South Korea can submit multiple applications through different brokerage houses in a bid to get more shares in a big IPO."
An expert says although this is the last time for multiple applications, the competition is not as fierce as previous subscriptions.
"The competition on the first day is falling short of those previous subscriptions including Kakao Bank or SKIET. The biggest reason for the overvaluation is that 90 percent of its sales are coming from only one game, PUBG."
Another expert says that as the price is already set aggressively, it's unlikely to see as dramatic price rises as previous IPOs.
Eum Ji-young, Arirang News.