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Krafton Plans For IPO

PUBLIC OFFERING | ANNOUNCEMENT DATE: JANUARY 18, 2021
WRITTEN BY | 26 Jan 2021
Krafton Plans For IPO
PUBLIC OFFERING
09 MAR 2021
Nodwin Gaming Receives $22.4m From Krafton
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đź’µ Public Offering

  • South Korean gaming holding Krafton plans to go public on Korea Exchange Market (KRX) in mid-to-late 2021. The potential proceeds may reach several billions of dollars and bring the company’s valuation up to $27.2B as reported by Eugene Investment & Securities Co

    • The IPO could make Krafton one of the world’s most valuable gaming companies

    • The public offering will allow Krafton to expand in other entertainment sectors with its IP (e.g. movies, animated series) and portfolio diversification

    • Tencent is the 2nd largest shareholder in the company, owning a 16% stake

💸 Krafton’s M&As

  • In December 2020, Krafton merged with the publishing and support functions of PUBG Corporation, creating a new division PUBG Studio, which is now focused solely on the development

    • Around the same time, Two Krafton’s subsidiaries PNIX and Delusion Studio have consolidated into new mobile developer RisingWings

  • In November 2018, following Tencent’s large investment caused by PUBG success, Bluehole created Krafton as a video game holding company and became its subsidiary.

  • In June 2018, Bluehole acquired South Korea-based local mobile game developer Delusion Studio for an undisclosed sum

  • In March 2018, Bluehole acquired South Korea-based mobile game developer Red Sahara Studio for an undisclosed sum

  • Previously, Bluehole had acquired several other companies, including mobile game developer PNIX Games and PC&console focused developer Ginno Games (former PUBG Corporation; PUBG Studio in present)

🎲 Products

  • Krafton is best known for its multi-platform battle royal game Playerunknown’s Battlegrounds, which has been sold more than than 70m copies across PC&console and was downloaded over 600m times on the Mobile platform

  • The game was developed by PUBG Corporation (now PUBG Studio), which contributes the most to Krafton’s sales and profits, generating more than $1.1B for the nine months period ended September, 30

  • Krafton has two other studios under its wing:

    • Bluehole, a PC-focused developer behind TERA (The Exiled Realm of Arobea), a flagship MMORPG, which was one of the first MMOs to integrate non-targeting combat system

    • RisingWings, a mobile game developer with several successful products in its portfolio, including golf simulator Golf King and multiplayer bowling game Bowling King

SOURCES: BLOOMBERG, KRAFTON

KRAFTON
  • Founded in 2018 as Krafton; in 2007 as Bluehole

  • Headquarters — Seongnam, South Korea

  • Founded by Chang Byung-Gyu

  • Multiplatform developer behind PUBG game