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Key Takeaways
- Webtoon Entertainment shares advanced in intraday trading Friday, a day after surging 9.5% in their Nasdaq debut.
- The online comics platform sold 15 million shares at $21 apiece in an initial public offering, and also issued 2.38 million to South Korean tech giant Naver, which backs the firm.
- Webtoon is expected to use the money raised to expand its platform and boost advertising.
Webtoon Entertainment ( WBTN ) shares advanced in intraday trading Friday, a day after surging 9.5% in their Nasdaq debut.
The Los Angeles-based online comics platform backed by South Korean search engine Naver sold 15 million shares in an initial public offering (IPO) at $21 each. The company added that the underwriters have the option to purchase 2.25 million more shares over the next 30 days.
In addition, Webtoon will be issuing separately about 2.38 million shares to a subsidiary of Naver, also for $21 apiece. Together, the two sales were expected to raise $365 million. The company will reportedly use the money to expand its platform and increase advertising.
CEO Says Webtoon Could Be Behind ‘Next Big Thing’ in Culture
Chief Executive Officer (CEO ) Kim Jun-koo, who launched Webtoon in 2005 when he was a search engineer at Naver, was quoted as saying the demand from investors came because Webtoon could be behind the “next big thing” in culture, equivalent to the impact of Harry Potter or Pikachu. He also explained that the company’s success comes from its diversity of content.
Shares of Webtoon Entertainment, which opened at $21.30 and closed at $23.00 in their debut Thursday, were up a further 0.6% at $23.13 around 11:30 a.m. ET Friday after earlier touching $25.66.