Japanese mobile messaging service LINE Corp is heading for an IPO that could see the company valued at $5.5 billion.
LINE initially expressed a desire to go public in July 2014, when the company first filed for an IPO with a reported value of over $10 billion — almost twice as much as its current valuation.
The company’s new IPO filing explains it now plans to offer 35 million shares internationally at a price of roughly 2,800 yen ($26.30) per share.
According to Bloomberg, LINE wants to raise as much as 113 billion yen ($1 billion) at a market value of 588 billion ($5.5 billion).
The Japanese firm says it generates a “substantial portion” of its revenue from a small number of mobile games accessible through the platform, and back in August 2014 set aside $100 million to further invest in its mobile titles.
With that in mind, the company has warned investors that any future successes or failings will hinge on its ability to consistently launch new games and maintain healthy relationships with developers.
“Historically, we have depended on a small number of games for a majority of our mobile game revenues, and we expect that this dependence will continue for the foreseeable future,” reads the IPO filing.
“Our growth depends on our ability to consistently launch new games, whether developed internally or by third-party game developers, that achieve significant popularity, as well as to upgrade popular games with new features that our users find attractive.
“Our failure to maintain good relationships with third-party game developers or attract new developers could adversely affect our business, financial condition and results of operations.”
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2016