After mobile game company Netmarble Games unveiled a timetable and scale for its initial public offering, the share prices of CJ E&M and NCsoft that have some stakes in Netmarble Games, are showing strength.
The stock price of CJ E&M, for example, closed at 80,800 won on March 21, up 2.8 percent or 2,200 won from the previous day. The price of NCsoft also rose 1.03 percent or 3,000 won to 295,000 won.
Their stock prices were affected by the news that Netmarble submitted its IPO plans to the Financial Supervisory Service and projected its market capitalization at around 10.25-13.30 trillion won.
On the post-listing basis, CJ E&M and NCsoft each would have a 22.1-percent and 6.9-percent stake in Netmarble.
Kim Hyun-yong, an analyst at eBest Investment & Securities, said, "Even if Netmarble's IPO price is determined at 121,000 won per share, the bottom end of its expected IPO price range, it would be large enough to be equivalent to 76 percent of CJ E&M's market cap."
He added, "Given that CJ E&M's current stock price does not fully reflect its stake in Netmarble, its listing would create room for CJ E&M's stock price to rise by 20 percent further."