![Courtesy of Naver Webtoon](https://image.ajunews.com/content/image/2024/06/27/20240627103919265331.jpg)
SEOUL, June 27 (AJU PRESS) - Webtoon Entertainment, affiliated with Korea's leading internet portal Naver, has set its initial public offering price at $21 per share, the top end of its proposed range, signaling strong demand ahead of its debut on the Nasdaq on Thursday (local time).
At the set price, the market capitalization of the digital comics platform could reach $2.67 billion.
The Los Angeles, California-based firm is the parent company and North American operation of Seoul-based Naver Webtoon.
Webtoon Entertainment had previously targeted a price range of $18 to $21 per share in its filing with the U.S. Securities and Exchange Commission.
Through the IPO, it aims to raise approximately $315 million by issuing 15 million common shares. Trading will commence on Thursday under the ticker symbol "WBTN."
After the listing, Naver will continue to hold the largest stake with 63.4 percent, while LY Corp. of Japan will retain its 24.7 percent ownership.
Industry observers anticipate that the IPO will fuel Webtoon Entertainment's expansion in the North American market, particularly in intellectual property development and the adaptation of web novels and webtoons into other media formats.
In 2023, Webtoon Entertainment reported revenue of approximately $1.28 billion, with 80.2 percent from paid content sales, 11.3 percent from advertising, and 8.4 percent from IP expansion.
Webtoon Entertainment was formed in its current structure in 2020 after a share restructuring involving Naver Webtoon and Japan's LINE Digital Frontier.
The following year, Naver acquired Wattpad, the world's largest web novel platform, for $600 million and integrated it under Webtoon Entertainment.
Webtoons, originating from Korea, are digital comics designed for web and mobile platforms.
The webtoon industry has seen significant growth in recent years, moving beyond its traditional role as a user engagement platform to become financially viable.
Revenue streams now include sales of paid content, advertising, and intellectual property (IP) expansion.
Popular webtoons are adapted into various forms of content including TV dramas, films, and music videos. With an increasing number of adaptations based on webtoons, these digital comics have gained recognition as valuable intellectual property.