SEOUL : Shares in Krafton Inc, the Tencent-backed South Korean company behind blockbuster video game " PlayerUnknown's Battlegrounds " (PUBG), fell as much as 20% from their IPO price on their trading debut on Tuesday. Gaming companies are facing uncertain prospects in China where regulators have come down hard on a number of industries, upending norms with new guidance and regulations. Krafton was valued at about $18 billion, with shares last trading at 420,500 won in morning trade, down 16% from an initial public offering (IPO) price of 498,000 won. Tencent said it would further curb minors' access to its flagship video game "Honor of Kings", hours after its shares were battered. Some 65% of the IPO proceeds will go to Krafton, which plans to use the bulk of the funds to acquire other gaming companies.

Source: Mint August 10, 2021 01:07 UTC