Messaging app Line files for IPO, valued over USD 10 billion

Line Corp, the Japanese messaging app operator, has applied for an initial public offering (IPO) valued at over 1 trillion yen ($9.85 billion).

The company had filed for the IPO around two weeks ago at the Tokyo Stock Exchange.

Line Corp recorded 14.6 billion yen in revenue in January-March - a more than threefold increase on the year. With full-year sales hitting 51.8 billion yen last year, Line was the highest-grossing non-game app of 2013, according to analytics firm App Annie.

Owned by South Korea's Naver Corp, Line has hired Nomura Holdings Inc and Morgan Stanley to manage the IPO in Tokyo and is also considering listing in New York, a person with knowledge of the matter said on Tuesday.

The Line messaging app has expanded rapidly overseas in Asia and America, claiming popularity with its games and oversized emoticons, called stickers. Global downloads have surpassed 480 million, the company said.

An IPO would come amid a land-grab in the messaging app space, with Whatsapp recently snapped up by Facebook Inc for $19 billion and Viber bought by online retailer Rakuten Inc for $900 million.

Another person familiar with the IPO plans said parent Naver is likely to favour the sale of preferred shares to prevent a third party control over Line, whereas Line would prefer to sell ordinary shares to increase the proportion of Japanese retail investors. However, both Line and Naver were reluctant to comment.

A 57 per cent rise in Japan's benchmark share index last year spurred an increase in IPOs. Restaurant chain operator Skylark Co and game developer Gumi Inc are also planning to launch IPOs this year in Tokyo.

(Reuters)