SEOUL, KOREA - The value of Line Corp., the company that operates a popular mobile messaging app Line, is estimated at more than 28 trillion won. With it, the value of Naver Corp. is on the rise as it holds the 100-percent stake in the Tokyo-based company. On July 16, Naver said, "We submitted IPO documents with the Tokyo Stock Exchange." Still, it is considering listing its shares in New York or Tokyo.

 

Tongyang Securities estimated Line's initial market capitalization to be 23.0-28.5 trillion won if it is listed on the Tokyo Stock Exchange. Line currently has 480 million subscribers worldwide. The number of its monthly active users (MAU) is in excess of 200 million. The company's market value upon IPO was calculated by plugging the average value of Facebook and Twitter MAUs in the formula.

 

Lee Chang-young, Tongyang Securities analyst, said, "The recent growth rate of Line's subscriber numbers and sales revenue is much higher than that of Facebook or Twitter. I don't think the estimated market cap of Line is overblown." Given the current market value of Naver is 26.3 trillion won, it is abundantly possible that the daughter company's value may surpass that of the parent. The subscriber number of Line is projected to reach the 600 million level by the year's end given the daily new subscriber number is 800,000-900,000.