[NX] Nexon’s $1.3 Billion IPO Upcoming, The Biggest of the Year For Japan
It has been reported that Nexon has planned to go public on the Tokyo Stock Exchange after relocating their global headquarters to Tokyo earlier this year. News has now broken that Nexon hopes to raise 100 billion yen (US$1.3 billion) in their initial public offering (IPO) which could come as early as December 12.
Nexon has contracted Nomura Holdings, Morgan Stanley and Goldman Sachs to manage their public launch in Japan, North America and Europe. People with knowledge on the matter has said that the company, Tokyo-based Nexon Co. Ltd., is worth around 600 billion yen.
Nexon’s IPO will be the biggest of the year in Japan and the second largest in the technological industry worldwide for 2011.
“Investors around the world are happy to inject their money in areas where they can see growth,” said Kazumi Tanaka, an IPO analyst at T&C Financial Research Inc. in Tokyo. “Nexon may use the money to acquire competitors and to find talented people to develop the business.”
Nexon using a lot of the money to expand though M&A (Mergers and Acquisitions) is just what I expect them to do. Having taken a very aggressive stance where M&As are concerned over the years has brought Nexon hardly anything but good, having acquired the likes of Wizet, Neople, Gamehi and others who have all brought in increased revenue.
“As we pursue our strategic objectives, we regularly review our options for accelerating our growth,” Nexon’s Seoul office said in an e-mailed response to questions on the IPO. “We have made no decisions or announcements about any specific financing or other plans and cannot comment on rumors.”
Nexon has operations in Japan (where it is headquartered), Korea (where it was founded, its largest operations), North America and Europe.