South Korea’s Krafton, maker of hit game ‘PUBG’, tumbles on trading debut

SEOUL/HONG KONG: Shares in Krafton Inc , the Tencent Holdings-backed South Korean company behind blockbuster video game “PlayerUnknown’s Battlegrounds” (PUBG), fell as much as 20% from their IPO price on their trading debut.

Analysts attributed the tumble to an expensive valuation and China regulation risks, with gaming companies facing uncertain prospects after China regulators have come down hard on a number of industries, upending norms with new guidance and rules.

Krafton is the first large South Korean listing whose shares have failed to rise above the initial public offering (IPO) price on debut since a pickup in floatations last year.