Krafton gets off to weak start on 1st day of trading

By Chung Joo-won

SEOUL, Aug. 10 (Yonhap) – South Korean game developer Krafton Inc. got off to a lackluster start in its stock market debut Tuesday, although it emerged as the country's most-valued gaming label.

As of 9:30 a.m., the developer behind the global hit "PlayerUnknown's Battlegrounds" (PUBG) changed hands at 427,500 won (US$372.48) on the main bourse, down 4.68 percent from its opening at 448,500 won.

Krafton's initial public offering (IPO) price was set at 498,000 won.

The stock price set Krafton's market capitalization at some 20.8 trillion won, surpassing established gaming companies, such as NCSOFT and Netmarble.

Former gaming top cap NCSOFT was valued at 18.1 trillion won and No. 2 Netmarble at 11.6 trillion won as of 9:30 a.m.

Krafton failed to make a splash in its market debut amid concerns that its value was overrated.

The gaming label lowered its IPO pricing band to between 400,000 won and 498,000 won, from the previous 458,000 won-557,000 won range, as financial authorities requested revisions to its plan amid overvaluation concerns.

In its subscription period on Aug. 2-3, retail investors' deposits for the stock offering stood at a smaller-than-expected 5 trillion won, with an average subscription rate of 7.79:1, according to its IPO managers.

Launched in 2007, Krafton is looking to expand its video game portfolio with the launch of the new in-house mobile game "PUBG: New State" as early as September this year and the horror game "Callisto Protocol" next year.

jwc@yna.co.kr
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