WEBTOON Entertainment Announces Pricing of Initial Public Offering
WEBTOON Entertainment has announced the pricing of its initial public offering (IPO) with 15,000,000 shares of common stock available at $21.00 per share. The IPO is expected to generate approximately $315 million in gross proceeds, with an additional $50 million through a separate issuance to NAVER Shares will start trading on Nasdaq under the ticker symbol 'WBTN' on June 27, 2024, with the offering closing the next day. Leading financial institutions like Goldman Sachs and Morgan Stanley are managing the offering. The underwriters have a 30-day option to purchase an additional 2,250,000 shares. A registration statement has been filed with the SEC and declared effective on June 26, 2024.
- The IPO is expected to generate $315 million in gross proceeds.
- An additional $50 million will be raised through a separate issuance to NAVER
- Shares to start trading on Nasdaq under ticker 'WBTN', potentially increasing market visibility.
- Potential shareholder dilution with the addition of 17,250,000 new shares.
Insights
WEBTOON Entertainment's Initial Public Offering (IPO) is significant for investors. The offering price of
These funds can be used for strategic initiatives such as expanding their content library, enhancing platform technology, or global market expansion, potentially driving future revenue growth. However, investors should consider the dilution effect due to new shares issued and the impact of underwriting discounts and commissions on net proceeds.
The involvement of major financial institutions like Goldman Sachs and Morgan Stanley as lead bookrunning managers adds credibility to the offering. The company's choice to be listed on the Nasdaq Global Select Market under the ticker symbol "WBTN" underscores its ambition to be recognized as a major player in the entertainment industry.
In the short term, the stock might experience volatility as the market digests the new offering. Long-term prospects depend on WEBTOON’s ability to maintain and grow its user base, monetize effectively and compete with other entertainment platforms.
Retail investors should keep an eye on the company's post-IPO performance, particularly its quarterly earnings reports and user engagement metrics, to gauge whether WEBTOON can meet its growth expectations.
WEBTOON Entertainment's IPO opens up intriguing possibilities from a technological perspective. The company has pioneered the mobile webcomic format and its success hinges on continuous innovation in platform technology and user experience. The injection of new capital from the IPO can be expected to drive enhancements in user interface, content delivery optimization and perhaps new features that leverage AI and machine learning to personalize content recommendations.
Investors should be aware of the technical challenges of scaling a platform with 170 million monthly active users. Maintaining platform stability, ensuring data security and integrating new technologies without disrupting user experience will be critical. Significant investment in cloud infrastructure and cybersecurity can be anticipated.
Moreover, the company's ability to adapt to evolving market trends, such as the growing popularity of short-form content and interactive storytelling, will be crucial. Investors should look for signs that WEBTOON is not only keeping pace with these trends but also setting new standards in the digital entertainment landscape.
The shares are expected to begin trading on the Nasdaq Global Select Market on June 27, 2024 under the ticker symbol "WBTN" and the offering is expected to close on June 28, 2024, subject to customary closing conditions.
Goldman Sachs & Co. LLC and Morgan Stanley are acting as lead bookrunning managers for the proposed offering. J.P. Morgan and Evercore ISI are acting as active bookrunning managers for the proposed offering. Deutsche Bank Securities, UBS Investment Bank and HSBC are acting as joint bookrunning managers. Raymond James and LionTree are acting as co-managers.
The gross proceeds to WEBTOON from the offering, before deducting the underwriting discounts and commissions and offering expenses payable by WEBTOON, are expected to be approximately
A registration statement relating to the sale of these securities has been filed with, and was declared effective on June 26, 2024 by the Securities and Exchange Commission (the “SEC”). This offering is made only by means of a prospectus forming part of the effective registration statement. A copy of the prospectus relating to the offering, when available, may be obtained by visiting EDGAR on the SEC’s website at www.sec.gov, or from any of the following sources:
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Goldman Sachs & Co. LLC, Attention: Prospectus Department, 200 West Street,
New York, NY 10282, by telephone at 1-866-471-2526 or by email at prospectus-ny@ny.email.gs.com -
Morgan Stanley & Co. LLC, Attn: Prospectus Department, 180 Varick Street, 2nd Floor,
New York, NY 10014 or by email at prospectus@morganstanley.com -
J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue,
Edgewood, NY 11717, or by email at prospectus-eq_fi@jpmchase.com and postsalemanualrequests@broadridge.com -
Evercore Group L.L.C., Attn: Equity Capital Markets, 55 East 52nd Street, 35th Floor,
New York, NY 10055, by telephone at (888) 474-0200, or by email at ecm.prospectus@evercore.com
This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. Any offers, solicitations or offers to buy, or any sales of securities will be made in accordance with the registration requirements of the Securities Act of 1933, as amended.
About WEBTOON Entertainment
WEBTOON Entertainment is a leading global entertainment company and home to some of the world's largest storytelling platforms. As the global leader and pioneer of the mobile webcomic format, WEBTOON Entertainment has transformed comics and visual storytelling for fans and creators.
With its CANVAS UGC platform empowering anyone to become a creator, and a growing roster of superstar WEBTOON Originals creators and series, WEBTOON Entertainment’s passionate fandoms are the new face of pop culture. WEBTOON adaptations are available on Netflix, Prime Video, Crunchyroll, and other screens around the world, and the company’s content partners include Discord, HYBE and DC Comics, among many others.
With approximately 170 million monthly active users (as of the quarter ended March 31, 2024), WEBTOON Entertainment’s IP & Creator Ecosystem of aligned companies include WEBTOON, Wattpad--the world’s leading webnovel platform--Wattpad WEBTOON Studios, Studio N, Studio LICO, WEBTOON Unscrolled, LINE MANGA, and eBookJapan, among others.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240626482409/en/
Edelman Smithfield for WEBTOON
Hunter Stenback & Ashley Firlan
webtoonIR@edelmansmithfield.com
WEBTOON Entertainment
webtoonpress@webtoon.com
Source: WEBTOON Entertainment Inc.
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