![]() Krafton earns fees by providing technology services for "Peacekeeper Elite", a game similar to "PUBG Mobile" that Tencent distributes and is usually among China's top two grossing games, it said in an IPO filing. Krafton derived 87% of its revenue from Asia excluding South Korea in the January-March quarter, a large portion of which is estimated by analysts to come from sales in China handled by Tencent. ![]() Although the IPO price range was lowered, it was not lowered enough," said Douglas Kim, an independent analyst, who publishes on Smartkarma. ![]() "This was a classic case of the owners being a bit too greedy in their valuation assessment of the company. The stock closed down 8.8% from the IPO price, valuing the company at about $19.32 billion. Krafton shares opened down 9.9% from their IPO price of 498,000 won, making it South Korea's lowest trading debut since LG Philips LCD, now LG Display, first went public in 2004, according to data from Refinitiv Eikon. SEOUL/HONG KONG, Aug 10 (Reuters) - Shares in Krafton Inc (259960.KS), the Tencent Holdings-backed (0700.HK) South Korean company behind blockbuster video game "PlayerUnknown's Battlegrounds" (PUBG), fell as much as 20% on their trading debut on Tuesday.Īnalysts attributed the share tumble of South Korea's second-largest IPO to an expensive valuation and China regulation risks, with gaming companies facing uncertain prospects after China regulators have come down hard on a number of industries, upending norms with new guidance and rules.
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