Krafton IPO registration statement must be corrected: FSS

Krafton must refile its registration statement for an initial public offering (IPO) due to information that may be incorrect or missing, according to Financial Supervisory Service (FSS).

Krafton must refile its registration statement for an initial public offering (IPO) due to information that may be incorrect or missing, according to Financial Supervisory Service (FSS).

The gaming company’s retail marketing period had been set for July 14 and 15, and a delay is now possible.

According to FSS on Friday, it requested Krafton submit a corrective registration statement as “the statement submitted has not been prepared in conformity with the prescribed form for the statement.”

The regulator can request a restatement if “there is any false description or representation of material facts in the registration statement or any omission of material facts, or if there is any uncertain description or representation of material facts in the registration statement that may undermine reasonable judgment on the investment or significantly mislead investors.”

Mirae Asset Securities, an underwriter of the IPO, submitted the registration statement on June 16.

It is likely that FSS has requested the game company to clarify how it arrived at the offering price and provide evidence to prove its value, according to multiple local reports.

The company registered to offer 10,060,230 shares at between 458,000 won ($406) and 557,000 won each. If the upper end of the range is hit, 5.6 trillion won of shares will be sold.

That would be Korea's biggest IPO to date, breaking the 4.88-trillion-won offering by Samsung Life Insurance in 2010.

Krafton has three months to submit a corrective statement, after which the registration will be considered withdrawn.

BY SARAH CHEA [chea.sarah@joongang.co.kr]