Messaging App Line Set for $1 Billion Tokyo, New York IPO
Messaging app Line has priced its IPO at the top end of its range after substantial demand for the shares. The company set the price at ¥3,300 ($32.37) a share.
Line will be floating on the Tokyo and New York stock exchanges on Friday. The company will be floating 35 million shares, meaning the company will be raising Y115.5 billion.
It is offering 13 million shares on the Tokyo Stock Exchange and 22 million on the New York Stock Exchange. The company will also offer 5.25 million shares through a "greenshoe" option, which could allow for the issuance of more shares if there is additional demand.
Line is owned by South Korea Internet giant Naver. This could be the biggest technology IPO of the year. A drought of tech IPOs this year has led to high interest for this one.
The company had delayed on giving a price range due to uncertainty around the impact of the U.K.'s vote to leave the European Union. On July 4, the company had set a price range of Y2,900 to Y3,300 per share, up from an earlier range of Y2,700 to Y3,200.
Line, which was launched in 2011, has 218 million active users monthly, about two-thirds of whom are in Japan, Taiwan, Thailand and Indonesia. The company had revenue of $1 billion last year from the sale of games, digital stickers and advertising.
The company's rival messaging WhatsApp has more than 1 billion active monthly users. WhatsApp was acquired by Facebook (FB) - Get Report in 2014. Facebook is a holding in Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio.
The company first submitted an application to float in Tokyo about two years ago but cited global turbulence for the delay.
Naver's shares were up 0.5% in Seoul today.