Kakao Piccoma Likely to Postpone Japan IPO from December This Year to Next Year

[Asia Economy Reporter Jeong Hyunjin] Kakao's Japanese subsidiary, Kakao Piccoma, which has become the number one player in Japan's webtoon and web novel market, is expected to postpone its initial public offering (IPO) on the Tokyo Stock Exchange from December this year to next year, Bloomberg reported on the 23rd.

Bloomberg cited multiple sources saying that considering the decline in tech stocks, Kakao Piccoma is likely to delay its IPO timing. The sources added that the IPO is currently expected to take place in the first half of next year but could change depending on market conditions.

Kakao Piccoma was valued at 847 billion yen (approximately 8.3 trillion KRW) during its fundraising last year, and the company is reportedly hoping to maintain a similar valuation at the time of the IPO. One source noted that since Kakao Piccoma is generating profits in Japan, it is expected to withstand the downturn in tech stocks.

Kakao Piccoma is a company in which Kakao holds 72.9% of the shares and Kakao Entertainment holds 18.2%. It competes with Line Manga, a webtoon company affiliated with Naver, in the Japanese manga application (app) market. As of the end of June, Kakao Piccoma's monthly subscribers reached 9.5 million, a significant increase from 2 million in August 2017.

Bloomberg evaluated that the digitalization of Japan's manga market has contributed to Kakao Piccoma's growth. According to the Japan Magazine Publishers Association, digital manga sales increased by 20% year-on-year last year and have quadrupled over the past seven years. The total market size is $5 billion, with over 60% consisting of digital manga.

Bloomberg stated, "Kakao Piccoma's Tokyo debut could be a turning point for more Korean startups attempting to expand overseas."

Regarding this, Kakao Piccoma reportedly said that while they plan to proceed with the IPO, specific details including the timing are still under review, Bloomberg reported.

This content was produced with the assistance of AI translation services.