Webtoon Entertainment IPO Valuation Analysis

• Webtoon announced that it is targeting a valuation of up to US$2.7 billion in the upcoming IPO. The IPO price range is from US$18 to US$21 per share.

• The company is aiming to raise as much as US$315 million in this IPO. Blackrock Asset Management has indicated interest of purchasing up to US$50 million in this IPO.

• Our base case valuation of Webtoon is market cap of US$3.6 billion or target price of US$27.9 per share (33% higher than the high end of the IPO price range).

Source: Naver Webtoon

Webtoon Entertainment (WBTN US) announced that it is targeting a valuation of up to US$2.7 billion in the upcoming IPO. The IPO price range is from US$18 to US$21 per share. The company is aiming to raise as much as US$315 million in this IPO.

Blackrock Asset Management has indicated interest of purchasing up to US$50 million in this IPO. Separately, Naver Corp (035420 KS)'s U.S. subsidiary Naver U.Hub has agreed to buy US$50 million worth of shares of Webtoon Entertainment in a private placement. After the IPO and the private placement, Naver will hold a 63.4% stake in Webtoon.