Naver says no 2014 IPO for messaging app subsidiary Line

Reuters News
|
Posted: Sep 22, 2014 6:04 AM

SEOUL (Reuters) - South Korean internet portal operator Naver Corp said on Monday that subsidiary Line Corp [IPO-LINE.T] has ruled out a 2014 initial public offering, introducing more uncertainty about the messaging app operator's fundraising plans.

Naver, in a regulatory filing, reiterated that Line is still considering whether to seek a single listing in Japan or in the United States. Line could also seek a dual listing in both countries, Naver said, without elaborating further on Line's plans.

"While Line's management has been considering an IPO as one of the options for future growth, Line is a service that is currently showing rapid and healthy growth," a Naver spokesman told Reuters.

"Line's management has determined that now is not the optimal timing for the initial public offering," he added without elaborating further.

Naver said in July that Line applied for an initial public offering in Tokyo, and a banking source previously told Reuters that Line could be valued at up to $20 billion. Banking sources said Line will eventually seek a dual U.S.-Japan listing or a listing only in the United States.

The Naver spokesman said Line's management did not see reason to rush any fundraising as it was already turning a profit.

(Reporting by Se Young Lee; Editing by Christopher Cushing)