Zynga rival Nexon's Tokyo IPO set at $1.2 billion: source

Reuters News
Posted: Dec 04, 2011 10:23 PM

TOKYO (Reuters) - Online gaming firm Nexon Co set the price of its initial public offering at 1,300 yen, at the mid-point of a 1,200 yen-1,400 yen range set the previous week, amid solid demand from investors, a source with knowledge of the matter told Reuters on Monday.

The $1.2 billion IPO comes after U.S.-based rival Zynga, known for its success with games on Facebook, was forced to lower its expected valuation in an IPO this month, due to weak markets and macroeconomic uncertainty.

Both companies offer PC-based games for free, but charge small amounts for in-game virtual items, a business model analysts see as relatively recession-proof.

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Nexon, whose most successful offerings include role playing game MapleStory and KartRider, is set to list on the Tokyo Stock Exchange on December 14.

(Reporting by Nathan Layne and Isabel Reynolds; Editing by Chris Gallagher)