Shares in S.Korea's Krafton, maker of hit game 'PUBG', fall in debut (updated)

KRAFTON

10/08/2021 01:24

(Adds background, market capitalisation)
    By Joyce Lee
    SEOUL, Aug 10 (Reuters) - Shares in Krafton Inc  259960.KS ,
the South Korean company behind the blockbuster video game
"PlayerUnknown's Battlegrounds" (PUBG), opened down 9.9% from
their initial public offering (IPO) price on their trading debut
on Tuesday. 
    The games developer, backed by Chinese gaming giant Tencent
Holdings Ltd  0700.HK , was valued at about $19.6 billion on
Tuesday, with shares trading at 460,000 won in morning trade
down from an IPO price of 498,000 won.
    Krafton derived 87% of its revenue from Asia, excluding
South Korea, in the January-March quarter, a large portion of
which is seen coming from sales in China handled by Tencent. 
    Gaming companies are facing uncertain prospects in China
where regulators have come down hard on a number of industries,
upending norms with new guidance and regulations.
    Tencent this month said it would further curb minors' access
to its flagship video game "Honor of Kings", hours after its
shares were battered by a state media article that described
online games as "spiritual opium".  urn:newsml:reuters.com:*:nL1N2PA03U 
    Still, Krafton raised $3.75 billion in South Korea's
second-largest IPO, even after the firm cut its fund-raising
target by a quarter after regulators ordered it to revise its
filings. 
    Some 65% of the IPO proceeds will go to Krafton, which plans
to use the bulk of those funds to acquire other gaming
companies.
     
($1 = 1,146.7700 won)

 (Reporting by Joyce Lee and Jihoon Lee; Editing by Edwina Gibbs
and Richard Pullin)
 ((jungyoon.lee@tr.com; +82 2 6936 1467;))