South Korean regulators are stepping up scrutiny of big initial public offerings as rich valuations prompt concerns over bubbles in the Asian market.
Krafton, the company behind global hit game PlayerUnknown’s Battlegrounds, last week lowered its IPO price more than 10 per cent and cut the deal size by almost a quarter under pressure from financial regulators. Krafton, which is backed by Chinese internet group Tencent, had sought to raise $5bn in what was expected to be Korea’s largest-ever listing.
The listing’s decreased ambitions came as South Korea’s IPO market heads for a record year fuelled by retail investors, who often expect companies to double on their trading debuts. Gaming, biotech and shipbuilding companies are rushing to go public as the Kospi index trades near all-time highs.