PlayerUnknown's Battlegrounds maker to launch IPO early next week

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PlayerUnknown's Battlegrounds maker to launch IPO early next week

HONG KONG SEOUL - Krafton, the company behind the blockbuster video game PlayerUnknown's Battlegrounds is itslated to launch an IPO early next week in what could be South Korea's largest listing in 11 years, people familiar with the matter said.

The company of Tencent is using its initial public offering to raise at least $5bn in the initial offering by selling 20% of its shares, one said after the Korean Exchange announced that Krafton had preliminary approval for its listing.

The official plans to launch the IPO will be made early next week, three people who did not want to speak out as they were not authorised to speak directly to the media told Reuters.

South Korea is experiencing its hottest IPO market on record and analysts expect that at least 20 trillion won could be raised in 2021, which would be about four times above 2015 levels.

Krafton was valued at around $25 billion based on its final plans, although the current size of the IPO could increase, adding another person.

Krafton said in a statement that it could not comment on details of the IPO before it filed a regulatory filing.

In a cost-effective 5 billion-plus, Krafton would become the biggest IPO in Samsung Life Insurance given the 4.9 trillion won float of South Korea in 2010, as the data on exchange shows.

The price at which shares will be created and therefore Krafton's value will be decided once the process is finalised which, under the South Korean system, could take several weeks.

Battery makers LG Energy Solution said Tuesday that it had applied for local approval of a preliminary IPO that could raise $10 to $12 billion with just 10 shares of investment.

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