Kakao Games reported a 697 percent increase in net profit to 270 billion won ($236 million) in the third quarter compared to a year ago, the company announced on Wednesday, the first earnings result since its successful listing back in September.
Kakao Games hit its daily increase limit of 160 percent on its first day of trading on the Kosdaq market. By market capitalization, it is now the fifth largest company on the Kosdaq, ahead of pharmaceuticals company Celltrion.
Retail investor deposits in the book-building exercise for Kakao Games hit almost $50 billion after two days. It is a new record for Korea.
Kakao Games attracted 16.4 trillion won ($13.8 billion) worth of deposits on the first day of retail investor book building Tuesday, for an over-subscription rate of 427.5 times.
Kakao Games looks set to hold the most popular initial public offering (IPO) Korea has seen after posting a record-breaking subscription rate from institutional investors last week.
Shares of Kakao hit an all-time high on Thursday as investors turned bullish due to the rising profitability of its major services, robust demand for digital content during the pandemic and the highly anticipated listing of its affiliate Kakao Games.
Past performance, as they say, is no guarantee of future results, but Korean investors are not moved by that warning. With a flurry of successful initial public offerings (IPOs) and some big names on the horizon, the ants are piling in.
Kakao Games is preparing for an initial public offering (IPO). The game company majority owned by Kakao said Thursday afternoon that it submitted documents for a preliminary examination to be listed on the Kosdaq market.