] Netmarble Games has set the subscription price for its IPO at a reasonable level and there is ample room for its stock price to rise after its goes public, said KTB Investment and Securities on March 21.
The game developer has set the price between 121,000 won (US$108.30) and 157,000 won, making its market value at between 10.3 trillion won and 13.3 trillion won. Applying the average price-earnings ratio of top seven global game makers, the market value of Netmarble should be 14.8 trillion won, estimated analyst Lee Min-a.
It has secured cash generating games such as “Seven Knights,” “Modoo Marble” and “Lineage 2 Revolution”, and will continue to release hits based on a sold lineup of new games, said the analyst.
Daily revenue from “Lineage 2 Revolution” remains solid at an average of 4 billion won according to January data, added Lee, forecasting that the company’s total revenue this year will surge 91.1 percent on-year to 2.9 trillion won and operating profit by 247 percent to 1 trillion won.
Samsung Securities agreed that its total market value is lower than the estimates of 13.6 trillion won. Its “Lineage 2 Revolution” remains strong and over 10 new games are set to be released. Considering the diversified game portfolio and high growth rate, it will be reasonable to apply the standard of global major rivals, said analyst O Dong-hwan.
Its listing might be negative for short-term supply and demand of NCSoft
, but in the long term, could raise the value estimation and profit from its stake, added the analyst.
By Hwang You-mee (email@example.com