Messaging application Line cabinets IPO plans

line app

Line provides adorable emoticons, which includes ones tailor-made for little ones.

Well-liked messaging application Line, known for its adorable emoticons, is shelving strategies for an IPO this 12 months.

South Korea’s Naver Corp., which owns the Japan-dependent firm, stated it won’t listing Line on an global market place in 2014 but may possibly revisit its choice in the next six months.

Naver mentioned in July it was hunting at Japan and the U.S. for a possible IPO. The organization reportedly even filed a listing software to the Tokyo Inventory Trade, valuing the company at one trillion yen ($ 9.two billion).

Most of Line’s customers are in Japan, a marketplace nearing saturation. Analysts say the company, which nonetheless faces stiff opposition in the area, is very likely searching to get increased scale before launching its IPO.

“They are really a well-liked substitute in Southeast Asia, but they experience substantial issues in China and Korea — China has WeChat , and Korea has KakaoTalk and Daum,” said Lydia Bi of Canalys, a tech research agency.

Line might also be nervous about becoming the first chat application operator to listing its shares, which would encourage direct comparison with social media giants like Facebook ( FB , Tech30 ) , Twitter ( TWTR , Tech30 ) or Linkedin ( LNKD , Tech30 ) , she stated.

Line has 500 million registered users, and its revenues have been growing strongly. But the organization has not published its tally of month to month lively end users, a key metric for messaging applications.

By comparison, competitor WhatsApp , owned by Fb, has 600 million month to month energetic users.

The determination to pull the IPO contrasts with the record $ 25 billion New York debut by China tech organization Alibaba last week.

Line offers totally free messaging and voice calls, generating earnings from the sale of lovely emoticons, video games and other companies.

It truly is a product that’s labored well — individuals product sales ended up value 18.two billion yen ($ 167 million) in the 2nd quarter, up twenty five% from the 1st quarter, and a whopping 146% enhance from the very same interval last calendar year.

The application was very first designed as a world wide web-based mostly communication support in Japan after the 2011 earthquake and tsunami downed phone networks.

Naver, listed in Korea, experienced a rocky working day on the markets, 1st dropping as considerably as 3% just before recouping losses in Seoul buying and selling.

–CNN’s KJ Kwon contributed to this report

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