With Manga becoming more and more popular as anime fans around the world have grown, a South Korean Manga app called Kakao is preparing for its IPO in 2023. The company initially wanted to list in December of this year but will be pushing its listing back.
The South Korean Messaging Giant Decided to Push the IPO of Its Manga Business
According to the story by Bloomberg, Kakao Corp, a South Korean messaging giant, has a manga business that was already on track to becoming public. Its listing was supposed to happen on the Tokyo Stock Exchange as it aimed to get a $6 billion valuation.
Kakao Piccoma Corp., the Manga app operator, had previously planned to debut its initial public offering back in December. As per familiar sources with the situation, the process, however, was delayed due to slumping tech valuations.
Piccoma Previous Saw a Valuation of $6.2 Billion to Raise Funds in 2021
Piccoma previously saw a valuation of $6.2 billion when it decided to raise funds in 2021. The company wants to maintain the threshold when it finally goes public, as per a source familiar with the story.
The IPO is expected to take place during the first half, but its official plans remain flexible depending on market prices. Piccoma decided to join a growing pipeline of different companies that are waiting to go public after a "global stock market rout hammered tech firms with lofty multiples."
'Amazon of South Korea' Coupang Reached a Valuation of $86 Billion in 2021
Coupang Inc., an e-commerce giant that was also known as the Amazon of South Korea, was able to reach a valuation of over $86 billion in 2021, which followed the $4.6 billion New York listing.
Its valuation, however, has seen a plunge of over 60% of its peak. As per Business News, Piccoma, a site that is popular for featuring popular Japanese-style comics, can remain patient as it has already been making profits anyway.
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Net Income Dropped to $2 Million as Higher Marketing Costs Affected Profitability
According to a report published by the All Japan Magazine and Book Publisher's and Editor's Association, digital manga sales reportedly climbed 20% back in 2021, coming from the year before. This resulted in it growing to over 60% of the total $5 billion market, as seen on Shuppankagaku.
Piccolo was able to rake in its profit for the first time in 2020 based on Korean regulator filings that were made. Their net income was able to thripple in 2021, reaching $39 million with a surge in sales of 88%.
The net income of the company dropped to $2 million on a rise of 27% in revenue for the first half of the year, but higher marketing costs, however, have affected their profitability. Piccoma was able to raise over $437 million in May of 2021 from its investors, which includes Anchor Equity Partners.
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Written by Urian B.
