Back To Top

Line’s IPO might burden Naver: analysts

[THE INVESTOR] July’s stock debut of Tokyo-based Line Corp., the mobile messenger platform owned by Korean portal Naver Corp., could be a burden for the tech giant initially, market watchers say, but it would likely benefit Naver’s share price down the road. 

Line on Friday announced that it is seeking to sell 35 million new shares through its initial public offering, raising as much as 113 billion yen ($1.06 billion). The new shares, which will be offered at 2,800 yen per share, will begin trading in dual-listings in Tokyo on July 14 and New York on July 15.

This would place Line’s value at around 600 billion yen, in what could be one of the year’s biggest IPO for a technology company.

Screen capture of Line`s homepage
Screen capture of Line`s homepage
“It is possible that Naver’s stock price will slow down, due to the lower-than-expected market capitalization and the possibility of Naver’s dilution of shares on Line, as well as a breakdown of foreign investments,” analyst Hwang Sung-jin at HMC Investment Securities said. “But in the long term, the new capital flow from the IPO could be used as an engine for the company’s growth and the stock price will eventually exceed the IPO price.”
“In the temporary, Naver’s stock price might stumble, but it will lead to massive buying of the stocks in the future,” another analyst Jung Ho-yoon from Eugene Investment and Securities said.

By Ahn Sung-mi (