TOKYO -- Line debuted on the first section of the Tokyo Stock Exchange on Friday, fetching an initial quotation of 4,900 yen, 48% higher than its initial public offering price of 3,300 yen.
The Japanese messaging app company drew strong buying interest from investors with its name recognition, having more than 60 million users in Japan. Line is a unit of South Korean internet giant Naver.
Based on the initial pricing, Line's market capitalization is calculated at 1.03 trillion yen ($9.69 billion), comparable with that of JX Holdings.
The company had a dual listing on the New York Stock Exchange on Thursday, where its American depositary receipts ended at $41.58 in their maiden session.
Line's IPO is the biggest in Japan and the U.S. this year.
In Tokyo, shares temporarily rose to 5,000 yen, but subsequently stayed below the initial quotation due to profit-taking. The stock fell to 4,310 yen in afternoon trading and closed the day at 4,345 yen.
Line will raise up to 132 billion yen through the issuance of new shares via its IPO to finance capital spending on servers and other equipment as well as corporate acquisitions to prepare for an increase in access to its services and an expansion of them. It will also make debt repayments.
Line said on Friday that it logged a group net loss of 122 million yen in the January-March period, down from a loss of 1.8 billion yen in the same period last year, due to its unprofitable radio-type music distribution service. The company pulled the plug on the service in March.
According to its consolidated earnings report, which is calculated in accordance with international accounting standards, Line logged sales revenue of 33.4 billion yen in the first quarter, up 19% from a year earlier.