ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintIcon Twitter
Stocks

Investors loving Line's debut

Line shares hit a high of 5,000 yen on its first day of trading on July 8, before falling slightly on profit-taking.

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.

(Nikkei)

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Try 1 month for $0.99

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends October 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to Nikkei Asia has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more