Naver drops plan for Line IPO this year

Naver drops plan for Line IPO this year

28 AUG 2015

Naver, the maker of Japan’s most popular messaging app Line, said it won’t move ahead with an IPO in Japan or overseas this year and will wait until its earnings improve and the markets recover.

In April the company renewed its IPO application on the Tokyo Stock Exchange, which expired at the end of Japan’s fiscal year on March 31. The company had wanted to launch an IPO in Tokyo and New York last year but in September it had decided against the move.

Naver CFO Hwang In-joon told Reuters that global markets were too volatile to give a timeframe for going public, but noted that documents for its IPO were under review by authorities in Japan and the US.

Sources said the IPO was being held off until at least the spring.

Line’s revenue in Q2 fell to JPY27.8 billion ($223 million) from JPY28.1 billion in Q1 due to a drop in advertising sales.

Line has 211 million monthly active users, which puts it behind WhatsApp with 800 million and Tencent’s WeChat with 600 million.

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Joseph Waring

Joseph Waring joins Mobile World Live as the Asia editor for its new Asia channel. Before joining the GSMA, Joseph was group editor for Telecom Asia for more than ten years. In addition to writing features, news and blogs, he...

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