Messaging service Line surges after Tokyo listing

Japan’s leading messaging application provider Line made a robust debut on the Tokyo Stock Exchange Friday in Japan’s largest initial public offering this year.

Shares in Line were fetching 4,900 yen (46.3 dollars) at the opening bell and ended the day at 4,345 yen, up 31.7 per cent from the offering price of 3,300 yen, after rising as much as 51.5 per cent in the morning.

In New York, the shares ended Thursday, the first day of trading, at 41.58 dollars, up 27 per cent from its initial public offering price of 32.84 dollars per share.

Based on the closing price in Tokyo, Line, a wholly-owned subsidiary of South Korean internet search giant Naver, was valued at more than 900 billion yen.

“Line shares debuted above the IPO prices in New York and Tokyo and this is giving us a sense of optimism,” Maki Sawada, vice president of the investment research and investor services department at Nomura Securities, told Kyodo News agency.

The Tokyo-based company became the first Japanese company to go public simultaneously in Tokyo and New York markets to expand markets overseas and roll out new services.

Line, launched in 2011, said the number of active users stood at 218 million worldwide as of the end of March.

The messaging app has been popular in Japan, Taiwan and Thailand, while a steady increase in the number of users was seen in Indonesia, the company said.

Line provides free calls and messaging, while boosting revenues from advertisements and sales of games and digital stickers.

Line said Friday it posted a net loss of 122 million yen in the January-to-March quarter, compared with a net loss of 1.89 billion yen in the same period last year.

The company also booked an operating profit of 53.4 billion yen, compared with an operating profit of 14.2 billion yen the year before, while sales jumped 19 per cent to 33.5 billion yen.

Last update: Fri, 15/07/2016 - 11:27

More from Business

Twitter cuts more jobs, ends Vine app in pursuit of profitability

The social media service Twitter will lay off about 9 per cent of its workforce worldwide, the company announced...

China-owned Volvo Cars' third-quarter net profit doubles

China-owned Volvo Cars on Thursday said third-quarter net profit doubled, driven by strong sales in China and the...

HT revenues stagnate, net profit rises in first nine months

The Croatian Telekom (HT), posted a net profit of 752 million kuna in the first nine months of 2016, while its...

Samsung third-quarter earnings drop after Note7 woes

Samsung announced reduced profits for the third quarter on Thursday, as the company struggles with the aftermath of...

Croatian Postal Bank posts record net profit of HRK 147.5 mln

The Croatian Postal Bank (HPB)'s net profit in the first nine months of 2016 was 38.1% higher compared to the same...