By Gina Lee
Investing.com – Krafton Inc. made a subpar debut on the Korean Stock Exchange on Tuesday. The company’s listing was the first in South Korea where shares failed to rise above the IPO price in a debut since 2020’s uptick in listings.
Krafton shares tumbled 12.75% to KRW434,500 ($378.96) by 1:14 AM ET (5:14 AM GMT), after falling as much as 20% earlier in the session.
An expensive valuation and Chinese regulatory risks contributed to a disappointing debut for the company, which is backed by Tencent Holdings (OTC:TCEHY) Ltd. (HK:0700) and behind the blockbuster PlayerUnknown’s Battlegrounds (PUBG) video game.
Krafton said 87% of its first-quarter revenue for 2021 was from Asia ex-South Korea, with a large portion of the 87% likely from sales in China handled by Tencent. The Chinese company saw its shares tumble during the previous week after the Xinhua Agency-affiliated Economic Information Daily labeled online gaming “spiritual opium”.
However, Krafton still managed to raise $3.75 billion through what is currently South Korea’s second-largest IPO ever. The placing comes even after regulatory orders forced the company to slash the fundraising target by more than KRW 1 trillion.
Paul Choi, head of Korea Research at CLSA, remained bullish on the company’s long-term potential despite its rocky debut.
“Unlike other internet and gaming companies that are mostly domestic-focused, 95% of Krafton’s revenue is generated outside South Korea… so this is a rare, truly global new economy firm.,” he told Bloomberg.
Related Articles
Krafton Tumbles in Korean Stock Exchange Debut, but Raises $3.75 Billion
Reliance joins Bill Gates, others to invest $144 million in U.S. energy storage co
Amazon to pay shoppers hurt by others’ products, does not admit liability
stock market investing and crypto investing. Come for business consultations with us. Our phone number is 804-349-6199
All business plans created are tailored to the client's strengths and weaknesses after a full market research is done for the business and locations that it is profitable for you. please feel free to contact me. 804-349-6199
from WordPress https://ift.tt/3s6S8PZ
via IFTTT
No comments:
Post a Comment