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Webtoon Entertainment's US IPO Raises $315 Million at Peak Price
Webtoon Entertainment Inc., an online comics company, has successfully priced its US initial public offering at the top of the marketed range, raising $315 million. The company, which has the backing of South Korea-based Naver Corp., sold 15 million shares priced between $18 and $21.
Cornerstone Investment from BlackRock
BlackRock Inc., through accounts they manage, had shown interest in purchasing up to $50 million worth of shares, as noted in the company's filings with the US Securities and Exchange Commission. This strategic move underscores the significant interest and confidence from major financial players.
Market Valuation and Share Distribution
The IPO price places Webtoon's market value at approximately $2.7 billion. Post-offering, Naver will retain over 60% ownership of Webtoon, while Tokyo-based LY Corp. will hold around a 25% stake, as indicated in the filings. This substantial control by Naver underscores their ongoing commitment and strategic interest in the burgeoning webtoon market.
Company Overview and Financials
Webtoon Entertainment connects 24 million creators with about 170 million monthly active users across more than 150 countries. Despite its wide user base, the company reported a net loss of $145 million on revenue of $1.28 billion for the past year. The growth and losses reflect the company's aggressive expansion and investment in its platform and content.
South Korea's Cultural Export Success
Webtoons have joined the ranks of South Korea's successful cultural exports, alongside K-pop and drama series, contributing significantly to the business of Naver and its rival, Kakao Corp. This demonstrates the global appeal and commercial viability of South Korean content beyond traditional media forms.
IPO Leadership and Trading Details
The offering is being led by major financial institutions including Goldman Sachs Group Inc., Morgan Stanley, JPMorgan Chase & Co., and Evercore Inc. Shares of Webtoon are expected to begin trading on Thursday on the Nasdaq Global Select Market under the symbol WBTN, marking a significant milestone for the company.
As a result, Webtoon Entertainment's successful IPO highlights the growing global appetite for digital comics and South Korea's increasing influence on the global cultural stage.
