BGMI-maker Krafton slashes its IPO target by over USD 1 billion: here’s why

BGMI (Battlegrounds Mobile India) has garnered a huge user base ahead of the official launch all thanks to the early access rollout. The majority of PUBG Mobile users are successfully enjoying the gameplay experience and it seems things are falling in place for Krafton. 

Also Read: BGMI name list: 50 stylish and unique names for Battlegrounds Mobile India

The game developer recently applied for an initial public offering in South Korea, but it seems that the company has to resubmit the application, resulting in Krafton having to slash its IPO target. A report from Reuters suggests that the company has to resubmit its application because the country’s Financial Supervisory Service (FSS) has pointed out concerns over the application. 

Krafton slashes IPO target

Krafton told Reuters, “Krafton plans to revise our IPO registration statement in response to the Financial Supervisory Service (FSS)’s request.” According to the report, this will delay the IPO listing by two weeks. Additionally, this has forced the developer to slash its IPO target. Krafton was previously expected to raise as much as USD 4.9 billion from the IPO, and the revised target stands at USD 3.8 billion.

The IPO filed but Krafton seems to be one of the biggest ever IPOs of the country, but it’s going to be delayed because of review. Furthermore, the report suggests that the FSS has asked Krafton to refile the IPO registration as the previous filing is likely to have three major issues. 

These issues include false information or factual errors, the format of the application not being proper, and the inclusion of confusing statements which might lead to serious misunderstanding among the investors. 

In case you’re unaware, Tencent, maker of PUBG Mobile, has a major investment in Krafton and it holds around 15.35 percent shares of the company. If Krafton fails to resubmit the revised application within three months then the previous applications will be withdrawn. Krafton has invested USD 22.4 million in esports company Nodwin to expand its presence in India.

Krafton recently brought PUBG Mobile back to India in the avatar of Battlegrounds Mobile India. In addition, the developer is also launching a new PUBG game for mobile called PUBG: New State.

Source, Via

Pratik Vyas

Pratik has over 8 years’ experience in the field of tech. Passionate about technology, you’ll usually find him running rigorous gaming tests on the latest smartphones. When he’s not at his desk, he’s usually demolishing opponents in a game of table tennis.