On Friday, Japan’s largest messaging app Line Corp. announced plans to file an initial public offering (IPO) next month, and list shares in both Tokyo and New York. It would value the app at 588 billion yen, or $5.50 billion.
Line’s IPO could be the biggest of the year for Japan; the company, which is owned by South Korea’s Naver Corp., is planning to use the funds raised to expand at home and internationally.
The messaging app plans to sell 13 million new shares in Japan and 22 million abroad, with a price of 2,800 yen each. Naver will offer as much as 5.25 million existing shares in case there is stronger than anticipated demand. Line’s parent company's ownership will fall to as low as 80.8%.
On July 11, Line will set the final price of its shares, after determining investor interest and demand. The goal is to list in New York on July 14 and in Tokyo on July 15. Morgan Stanley, Goldman Sachs, JPMorgan, and Nomura are managing the IPO.
“After rounds of serious investigations, we determined that it is important that we are evaluated on the same market as other top global services. Furthermore, listing on the NYSE will help strengthen our branding as a global company,” a Line spokesperson told TechCrunch. “LINE is a company that takes on challenges, and our simultaneous listing in Japan and the US is a declaration that we are ready to take on the world.”
Line has had quite the journey. After the earthquake and tsunami disaster back in 2011, the company had to change course and launched the messaging app NHN Japan to help with communication during the aftermath, Reuters reports.
While Line boasts the most users among messaging apps in Japan, it falls far behind Facebook’s WhatsApp and Messenger. At the end of March, Line had roughly 218 million users, but this number has started to taper off recently after tripling over the past three years. In comparison, WhatsApp and Messenger has 1 billion and 900 million monthly active users, respectively.
Based on these statistics, the company is the seventh-most used messenger app on a global scale. China’s WeChat is also well above Line, with 697 million users. The only other markets that Line is a leader in is Taiwan, Thailand, and Turkmenistan.
WhatsApp and Messenger have a considerable lead in user numbers in comparison to Line, and it will be difficult—though not impossible—for Japan’s top messaging app to gain a strong foothold in major Western markets. So right now, WhatsApp and Messenger can sit comfortably, but should still be aware of Line’s soon-to-be public presence.
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Messaging App Line to File for IPO: Should WhatsApp, Messenger Be Worried?
On Friday, Japan’s largest messaging app Line Corp. announced plans to file an initial public offering (IPO) next month, and list shares in both Tokyo and New York. It would value the app at 588 billion yen, or $5.50 billion.
Line’s IPO could be the biggest of the year for Japan; the company, which is owned by South Korea’s Naver Corp., is planning to use the funds raised to expand at home and internationally.
The messaging app plans to sell 13 million new shares in Japan and 22 million abroad, with a price of 2,800 yen each. Naver will offer as much as 5.25 million existing shares in case there is stronger than anticipated demand. Line’s parent company's ownership will fall to as low as 80.8%.
On July 11, Line will set the final price of its shares, after determining investor interest and demand. The goal is to list in New York on July 14 and in Tokyo on July 15. Morgan Stanley, Goldman Sachs, JPMorgan, and Nomura are managing the IPO.
“After rounds of serious investigations, we determined that it is important that we are evaluated on the same market as other top global services. Furthermore, listing on the NYSE will help strengthen our branding as a global company,” a Line spokesperson told TechCrunch. “LINE is a company that takes on challenges, and our simultaneous listing in Japan and the US is a declaration that we are ready to take on the world.”
Line has had quite the journey. After the earthquake and tsunami disaster back in 2011, the company had to change course and launched the messaging app NHN Japan to help with communication during the aftermath, Reuters reports.
While Line boasts the most users among messaging apps in Japan, it falls far behind Facebook’s WhatsApp and Messenger. At the end of March, Line had roughly 218 million users, but this number has started to taper off recently after tripling over the past three years. In comparison, WhatsApp and Messenger has 1 billion and 900 million monthly active users, respectively.
Based on these statistics, the company is the seventh-most used messenger app on a global scale. China’s WeChat is also well above Line, with 697 million users. The only other markets that Line is a leader in is Taiwan, Thailand, and Turkmenistan.
WhatsApp and Messenger have a considerable lead in user numbers in comparison to Line, and it will be difficult—though not impossible—for Japan’s top messaging app to gain a strong foothold in major Western markets. So right now, WhatsApp and Messenger can sit comfortably, but should still be aware of Line’s soon-to-be public presence.
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