Kakao Games, South Korea‘s online and mobile game software developer and publisher, has applied for a preliminary screening for an initial public offering on the second-tier Kosdaq, according to the Korea Exchange Monday.
If the game arm of internet giant Kakao passes the screening process by the market operator KRX, it is projected to go public in the second half of 2018. Korea Investment & Securities is the sole underwriter for the IPO.
The company’s value is estimated at 1.5 trillion won ($1.4 billion) in a break-up analysis of Kakao, according to Samsung Securities‘ report Friday.
After a merger deal with Daum Game in 2016, Kakao Games was founded the same year.
In 2017, its net profit came to 55.7 billion won, making a turnaround from net loss the previous year at 1.8 billion won. Its operating profit reached 32.3 billion won, jumping sixfold on-year.
In the first quarter this year, its revenue from game-related business came to 105.6 billion won, up 32 percent on-year, according to the company’s preliminary data. The figure also tops that of the yearly revenue in 2016, at 101.3 billion won.
Kakao Games eyes the release of seven new mobile games this year, including a role-playing game “Blade 2” in the second quarter.
By Son Ji-hyoung