PUBG owner Krafton looking to raise $5 billion through South Korean IPO

PlayerUnknown's Battlegrounds owner Krafton is looking to raise $5 billion through an incoming IPO, according to a new report from Bloomberg. 

The company, which was formerly known as Bluehole and owns Battlegrounds developer PUBG Studio, has filed to raise as much as 5.6 trillion won in a South Korean initial public offering that would become one of the largest in the country's history. 

The Pangyo-based holding company intends to sell over 10 million shares for between 458,000 won ($409) and 557,000 won ($498) each, with that top-end granting it a market capitalization of 28 trillion won ($25 billion).

Krafton has been flirting with the prospect of an IPO for some time, having applied for preliminary approval back in April this year, and intends to finalize its current plans on July 9, 2021, before pushing ahead with the listing on July 22. 

Cape Investments & Securities analyst Choi Jin-sung told Bloomberg the cash will most likely be spent on mergers and acquisitions to help it expand beyond the world of games. 

"Krafton has a lot of cash and is raising additional billions through the IPO," commented Jin-sung. "There aren’t many great options in the market to buy a gaming developer. I expect it’s more likely for Krafton to pursue M&As in the entertainment industry."

The news comes around a month after Krafton acquired mobile studio Dreamotion to "further strengthen its global market penetration with independent studios with unique identity."