Kakao Games’ pre-IPO market value soars to W2.8tr from COVID-19

The coronavirus pandemic is turning out to be a blessing in disguise for game companies who are staying resilient in South Korea, with Kakao Games’ market valuation soaring -- a blessing in disguise after its failed attempt for an initial public offering in 2018.

According to over-the-counter trading platform Pstock, Kakao Games’ market value soared to 2.8 trillion won ($2.3 billion) as of Friday from 1.7 trillion on June 11, when it applied for a preliminary IPO examination on the second-tier Kosdaq.

“Last Friday, Kakao Games’ stock price spiked to 50,500 won thanks to market expectations on non-face-to-face businesses amid the COVID-19 outbreak,” a company official said. The stock price stood at 17,500 won on Jan. 2.

This is Kakao Games’ second trial for IPO on the Kosdaq. The company called off its plan in 2018 due to a delay in supervision by the Korean Institute of Certified Public Accountants, a mandatory process for an IPO.

Kakao Games is a subsidiary of the nation’s largest messenger app operator Kakao Corp. Last year, it recorded revenue, operating profit and net profit of 390.1 billion won, 35 billion won and 88.6 billion won, respectively.

On Thursday, it launched role-playing game Guardian Tales, which is about saving Kanterbury kingdom from invaders.

By Kim Byung-wook (kbw@heraldcorp.com)