Krafton’s IPO Plans and Future Strategies
Krafton, the company behind the immensely popular game PlayerUnknown’s Battlegrounds (PUBG), is gearing up for a significant financial move with its upcoming initial public offering (IPO). Let’s delve into the details of Krafton’s IPO plans and its strategies for the future:
IPO Details
Krafton announced that it intends to raise a substantial amount of 4.3 trillion won ($3.7 billion) through its IPO. The company has priced its shares at 498,000 won each, positioning itself at the upper end of the previously announced range. The listing is scheduled for August 10 and is anticipated to be one of the largest IPOs on the local bourse.
Revision and Controversy
Initially aiming for a record 5.6 trillion won, Krafton revised its pricing band following requests from financial authorities. This move came amidst concerns of overvaluation. However, Krafton has defended itself against these concerns, highlighting its significant presence in the global tech and entertainment industry.
PUBG’s Success and Global Reach
PUBG has been a phenomenal success for Krafton, with over 75 million copies sold globally for PCs and consoles since its launch in 2017. The mobile version of PUBG has achieved 1 billion downloads globally, excluding China, showcasing its immense popularity and player base.
Future Plans and Investments
Post-IPO, Krafton plans to allocate 70 percent of the funds towards mergers and acquisitions, focusing on promising game developers. The company aims to expand its video game portfolio with new releases like “PUBG: New State” and the horror game “Callisto Protocol.” These strategic moves reflect Krafton’s commitment to innovation and diversification within the gaming industry.
Indian Market Expansion
Krafton has also set its sights on the Indian market, evident from the success of Battlegrounds Mobile India, a game tailored for Indian players. Within a week of its release, the game garnered over 34 million registered users, highlighting the company’s strong foothold in India.
Partnerships and Initiatives
Krafton’s strategic initiatives include partnerships with companies like Pratilipi, an online storytelling platform, where Krafton led a funding round of $48 million. Additionally, Krafton recently announced its first esports tournament, Battlegrounds Mobile India Series 2021, with a substantial prize pool of Rs 1 crore.
In conclusion, Krafton’s IPO marks a significant milestone in its journey as a leading player in the global gaming industry. With a strong focus on expansion, innovation, and strategic partnerships, Krafton is poised for continued success and growth in the dynamic world of gaming.
