Tencent-Backed Krafton Tumbles After $3.8 Billion IPO
- Company has to convince investors it’s not a one-hit wonder
- Krafton looking to expand PUBG universe beyond gaming
This article is for subscribers only.
Krafton Inc., creator of hit video game PUBG: Battlegrounds, plummeted in its Tuesday debut after pulling off a $3.8 billion initial public offering that was South Korea’s biggest in over a decade.
Its shares fell as much as 20% before closing 8.8% down, becoming the first stock on the KOSPI mainboard to drop on debut this year. The Tencent Holdings Ltd.-backed firm, which cut its offering by more than 1 trillion won ($870 million) after regulators questioned its valuation, is grappling with concerns about its dependence on PUBG for almost all revenue and tightening scrutiny over China’s gaming arena.