The logo of free messaging app Line is pictured on a smartphone and the company's stuffed toy in this photo illustration taken in Tokyo, Japan, September 23, 2014. REUTERS/Toru Hanai/Illustration/File Photo
TOKYO: In delaying its IPO by two years, Japanese messaging app company Line Corp bought time to correct weak financial reporting controls, work on its business plan, bolster staffing – and left billions of dollars on the table as its valuation shrivelled.
Line's initial public offering in the next three weeks is set to raise about US$1bil (RM4.10bil), which given a global drought of such deals could make it the biggest tech listing this year, but sceptical fund managers point to tepid growth in Line's home market and doubts about its prospects for regional expansion. They also question whether its advertising revenue strategy will work.
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