Tencent-backed group behind hit game ‘PUBG’ tumbles on market debut

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Tencent Holdings Ltd updates

The Tencent-backed group behind global hit game PlayerUnknown’s Battlegrounds fell sharply in its trading debut on concerns over its high valuation, after raising $3.8bn in South Korea’s biggest initial public offering this year.

Shares in Krafton dropped close to 20 per cent in morning trading in Seoul on Tuesday and the company’s stock market capitalisation fell to about Won22tn ($19bn). Shares were down almost 12 per cent in late afternoon trading.

Krafton endured a difficult run-up to its IPO, the second-largest in South Korean history. The company cut its listing price by more than 10 per cent following pressure from regulators over its high valuation.

The IPO was also hit by fears over Krafton’s growth prospects in China, where Beijing has launched a regulatory crackdown on the tech sector. The company relies…

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