(Bloomberg) Tencent-backed Krafton Inc.’s stock plunged as much as 20% after pulling off South Korea’s biggest IPO in more than 10 years of $3.8 billion.
Krafton cut its IPO by at least 1 trillion won or $870 million following concerns by regulators of overvaluation amid its dependence on hit video game PUBG.
Overvaluation concerns and fears of Beijing’s crackdown following “spiritual opium” references on gaming firms by state media, weighed on Krafton’s stock on debut.
Paul Choi, head of CLSA Research, is still bullish on Krafton saying 95% of its revenue comes outside Korea unlike its rivals which are domestic-focused.
Krafton’s IPO was the second biggest in South Korea, after that of Samsung of $4.3 billion in 2010.
259960: KS is down -8.84%.
