A Japanese chat app is preparing to kick off what could be the world's biggest IPO this year
TOKYO — Emojis of a cuddly brown bear and his flatulent rabbit girlfriend Cony are met with investor skepticism as the company behind Line, the popular Japanese messaging app, prepares to kick off what's touted to be the world's biggest initial public offering this year.
Line Corp. will most likely raise $2 billion to $3 billion in a dual Tokyo-New York listing set for July, two people familiar with the matter told Reuters on Wednesday.
But the Tokyo-headquartered company has missed a trick by delaying the IPO until now, some fund managers said, pointing to Line's diminishing growth prospects in a Japanese market crowded with messaging platforms.
Is LINE rearry Japanese?
In 2014, South Korea's Naver Corp., Line's parent, said a dual initial public offering would raise up to 2 trillion yen, or $18 billion, predicting it would give Line worldwide recognition and improve its access to venture capital. But Line put that plan on ice last August, with its CEO saying the company would wait until its earnings and market conditions improve.