Netmarble IPO to be worth up to $2.35 bn

SEOUL: Netmarble Games Corp, South Korea’s largest mobile game company, said on Monday it plans an initial public offering (IPO) worth up to 2.66 trillion won ($2.35 billion) in what could be the country’s second-largest listing ever.

The Tencent-backed company said in a regulatory filing that it had set an indicative price range of 121,000 won to 157,000 won per share, valuing the IPO at about 2.05 trillion won to 2.66 trillion won.

If it prices in the mid-to-high indicative range, the KOSPI listing is expected to be the second-largest for South Korea, beating Samsung BioLogics Co Ltd’s 2.25 trillion won IPO last year and just behind the 4.9 trillion won IPO of Samsung Life Insurance in 2010. Netmarble will be issuing about 16.95 million new shares for the IPO, which will be 20 per cent of total shares upon listing, the company said in a statement. It is not selling any existing shares through the IPO. Netmarble, which is listing to raise funds for mergers and acquisitions, aims to raise its ranking in key markets to reach its goal of becoming a global top-5 game firm by 2020, Netmarble founder Bang Jun-Hyuk said in January.

The company, which acquired US game developer Kabam’s Vancouver studio in February for an undisclosed amount, reported 1.5 trillion won in consolidated revenue and 284.7 billion won in operating profit in 2016, up from 1.1 trillion won in revenue and 225.3 billion won in operating profit in 2015. Bang had a 30.6 per cent stake in Netmarble at end-2016, with entertainment firm CJ E&M holding 27.6 per cent and Tencent holding 22.2 per cent through an investment vehicle. — Reuters