Zynga meets an IPO challenger, MapleStory maker to raise $1.2 billion
Nexon plans to sell half of its shares on the Tokyo Stock Exchange and half overseas, because of its huge presence in the US and abroad, at 1,300 yen, or $16.60 USD starting Dec. 14. "There are not that many Japanese companies with overseas growth stories. That makes it attractive," Stats Investment Management chief investment officer Toru Hashizume told Reuters.
This pricing will give Nexon a valuation, the projected total worth of a company based on several factors, of 560 billion yen, or $7.1 billion USD. And what do you know, that's worth just as much as Zynga expects out of its IPO. And rightfully so, Nexon is credited with popularizing the free-to-play game model in the US with games like MapleStory for PC. And now, the company enjoys success on Facebook, thanks to MapleStory Adventures and recently Zombie Misfits.
Zynga begins to make the rounds in its IPO roadshow this week. The question is, however, will investors be more interested in a company that's made as much in less than half the time as Nexon (it's been around since 1994), or a pioneer with a far longer track record of success? Ready ... Fight!
Do you think Zynga or Nexon will do better with its debut on the market? Which do you think is more worthy of the billions? Sound off in the comments. Add Comment.