Japanese messaging app Line files for IPO valued over $10 billion - source

TOKYO Tue Jul 15, 2014 2:38pm IST

Takeshi Idezawa, chief operating officer of Line Corp, speaks during an announcement of its new service in Tokyo in this February 26, 2014 file photo. REUTERS/Yuya Shino/Files

Takeshi Idezawa, chief operating officer of Line Corp, speaks during an announcement of its new service in Tokyo in this February 26, 2014 file photo.

Credit: Reuters/Yuya Shino/Files

Related Topics

Stocks

   

TOKYO (Reuters) - Japanese messaging app operator Line Corp applied for an initial public offering (IPO) valued at over 1 trillion yen ($9.85 billion) around two weeks ago at the Tokyo Stock Exchange, a person with knowledge of the matter said on Tuesday.

Line, owned by South Korea's Naver Corp (035420.KS), has hired Nomura Holdings Inc (8604.T) and Morgan Stanley (MS.N) to manage the IPO in Tokyo and is also considering listing in New York, the person said.

Line and Naver declined to comment.

An IPO would come amid a land-grab in the messaging app space, with Whatsapp recently snapped up by Facebook Inc (FB.O) for $19 billion and Viber bought by online retailer Rakuten Inc (4755.T) for $900 million.

The Line messaging app has expanded rapidly overseas in Asia and America, claiming popularity with its games and oversized emoticons, called stickers. Global downloads have surpassed 480 million, the company said.

The company recorded 14.6 billion yen in revenue in January-March - a more than threefold increase on the year. With full-year sales hitting 51.8 billion yen last year, Line was the highest-grossing non-game app of 2013, according to analytics firm App Annie.

Another person familiar with the IPO plans said parent Naver is likely to favour the sale of preferred shares to prevent a third party taking control of Line, whereas Line would prefer to sell ordinary shares to increase the proportion of Japanese retail investors.

A 57 percent rise in Japan's benchmark share index last year spurred an increase in IPOs. Restaurant chain operator Skylark Co Ltd and game developer Gumi Inc are also planning to launch IPOs this year in Tokyo.

($1 = 101.5700 Japanese Yen)

(Editing by Christopher Cushing)

FILED UNDER:
  • Most Popular
  • Most Shared

GOOGLE

Tech Showcase

Advanced Software

Advanced Software

Computer spying malware uncovered with 'stealth' features - Symantec.  Full Article 

Apple Settlement

Apple Settlement

Apple $450 mln e-book settlement gets final court approval.  Full Article 

Samsung Complain

Samsung Complain

Samsung files ITC complaint to block Nvidia chips from U.S. - Bloomberg.  Full Article 

Jeep SUVs

Jeep SUVs

Chrysler says it will speed up recall repairs for Jeep SUVs.  Full Article 

Internet Rules

Internet Rules

Any new U.S. Internet rules must withstand lawsuits - FCC chief.  Full Article 

Amazon's Plan

Amazon's Plan

Amazon plans ad-supported video streaming service - NY post.  Full Article 

Cellphone Upgrade

Cellphone Upgrade

Mobile phones to get handy upgrade.  Video 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage