<p>South Korea's Krafton, the company behind blockbuster video game "PlayerUnknown's Battlegrounds" (PUBG), cut its IPO target by nearly a quarter on Thursday after a regulator warned it needed to revise its filings.</p>.<p>The company, which counts Tencent Holdings Ltd as its second-biggest shareholder, has revised the indicative price range for its 8.7 million share offering to 400,000-498,000 won per share.</p>.<p>At the top end of the range, the offering would raise 4.3 trillion won ($3.8 billion). That compares to its previous target of as much as 5.6 trillion won which if it had been reached would have been a record for South Korean IPOs.</p>.<p>South Korea's Financial Supervisory Service had told Krafton last week to resubmit its paperwork though it did not disclose the reasons behind the order.</p>.<p>Krafton, which derives 97 per cent of its operating profit from its online multiplayer war-fighting game, said in a statement that it had discussed the matter with its advisers "so that we could receive a reasonable market evaluation."</p>.<p>"Krafton's initial IPO pricing was too high considering the fact that most of the company's revenue comes from a single game," said Hwang Hyun-jun, an analyst at DB Financial Investment.</p>.<p>"There were also some concerns about the royalties it receives from China, which led authorities to advise the company to revise down the IPO price," he said.</p>.<p>Krafton is planning to release two PUBG-related games this year - a mobile game "PUBG: New State" and "Battlegrounds Mobile India".</p>.<p>The company is also expanding to areas such as web-based cartoons, movies and animation.</p>.<p>It reported 1.67 trillion won in revenue in 2020, up 54 per cent from a year earlier and its operating profit more than doubled to 774 billion won.</p>.<p><em>($1 = 1,131.4000 won)</em></p>
<p>South Korea's Krafton, the company behind blockbuster video game "PlayerUnknown's Battlegrounds" (PUBG), cut its IPO target by nearly a quarter on Thursday after a regulator warned it needed to revise its filings.</p>.<p>The company, which counts Tencent Holdings Ltd as its second-biggest shareholder, has revised the indicative price range for its 8.7 million share offering to 400,000-498,000 won per share.</p>.<p>At the top end of the range, the offering would raise 4.3 trillion won ($3.8 billion). That compares to its previous target of as much as 5.6 trillion won which if it had been reached would have been a record for South Korean IPOs.</p>.<p>South Korea's Financial Supervisory Service had told Krafton last week to resubmit its paperwork though it did not disclose the reasons behind the order.</p>.<p>Krafton, which derives 97 per cent of its operating profit from its online multiplayer war-fighting game, said in a statement that it had discussed the matter with its advisers "so that we could receive a reasonable market evaluation."</p>.<p>"Krafton's initial IPO pricing was too high considering the fact that most of the company's revenue comes from a single game," said Hwang Hyun-jun, an analyst at DB Financial Investment.</p>.<p>"There were also some concerns about the royalties it receives from China, which led authorities to advise the company to revise down the IPO price," he said.</p>.<p>Krafton is planning to release two PUBG-related games this year - a mobile game "PUBG: New State" and "Battlegrounds Mobile India".</p>.<p>The company is also expanding to areas such as web-based cartoons, movies and animation.</p>.<p>It reported 1.67 trillion won in revenue in 2020, up 54 per cent from a year earlier and its operating profit more than doubled to 774 billion won.</p>.<p><em>($1 = 1,131.4000 won)</em></p>