Krafton IPO for July likely to be delayed due to FSS demand on prospectus revision

The blockbuster debut of Krafton Inc., publisher of global-hit battle royale shooter Player Unknown’s Battlegrounds, would likely be delayed from the original plan for July after the Korean financial authority demanded more clarity on setting its pricing guideline at pricey level of mid-$400 apiece.

The Financial Supervisory Service (FSS) last Friday said that it had requested a revision to the Krafton’s IPO filing upon judging misleading or lacking information on the prospectus.

The authority did not specify the questionable area, but the industry believes it wants more clarity on how the pricing guidance has been set.

Its lead manager Mirae Asset Securities plans to submit the modified version next week, possibly in lowered pricing guidance.

Krafton has set the desired price band between 458,000 won ($406) and 557,000 won for its offering of 10,060,230 shares. When priced at the top band, it would be able to raise up to 5.6 trillion won to make the largest IPO in Korea.

The company was supposed to start a two-week book building session for institutional investors on Monday, but the timetable for listing on July 22 would inevitably be pushed back.

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