S.Korea's Kakao Games shares soar 30% in market debut (updated)
10/09/2020 01:43
(Adds stock move, background and analyst comment)
SEOUL, Sept 10 (Reuters) - Kakao Games Corp 293490.KQ
shares soared 30% on debut on Thursday, boosted by investors
betting on companies expected to benefit from people staying at
home due to the coronavirus pandemic.
The stock debuted on Seoul's junior stock market at 48,000
won, double the IPO price, valuing the company at 3.5 trillion
won ($2.95 billion).
The gaming unit of South Korea's biggest mobile messaging
operator Kakao Corp 035720.KS priced its IPO last month at the
top of its indicative range, reflecting strong demand for gaming
stocks as people bunker down at home to avoid the virus.
urn:newsml:reuters.com:*:nL4N2F52CG
In early morning trade, the stock rose as much as 30% from
its opening price to 62,400 won, compared with a 1.4% rise in
the junior KOSDAQ .KQ11 .
The IPO was one of the most highly anticipated offerings in
South Korea this year. urn:newsml:reuters.com:*:nL1N2DT09W
"The social distancing measures have prompted people to seek
entertainment options to keep themselves occupied and gaming
offers just that," said Kim Dong-hee, an analyst at Meritz
Securities.
(Reporting by Heekyong Yang and Jihoon Lee)
((Heekyong.Yang@thomsonreuters.com; +82 2 6936 1470;))