The Los Angeles, California-based company, backed by Korean internet giant Naver, raised $315 million in its initial public offering by selling 15 million shares at $21 per share, the top end of its proposed range of $18 to $21.
The price rose as much as 14 percent in early trading before closing at $23 per share, at which its market capitalization is estimated to reach about $2.9 billion. The company traded under the ticker "WBTN.”
Post-IPO, Naver remains the largest shareholder with a 63.4 percent stake, while Tokyo-based LY Corp. retains 24.7 percent ownership.
Webtoons, originating from Korea, are digital comics designed for web and mobile platforms. Naver Webtoon has been regarded as a pioneering leader and key player in the webtoon industry since its inception. As of March, Webtoon Entertainment had approximately 170 million global monthly active users (MAU).
In 2023, Webtoon Entertainment reported revenue of approximately $1.28 billion, with 80.2 percent from paid content sales, 11.3 percent from advertising, and 8.4 percent from intellectual property (IP) expansion.
Webtoon Entertainment was formed in its current structure in 2020 following a share restructuring involving Naver Webtoon and Japan's LINE Digital Frontier. The following year, Naver acquired Wattpad, the world's largest web novel platform, for $600 million and brought it into Webtoon Entertainment.
With the successful Nasdaq listing, Naver Webtoon is expected to accelerate the expansion of its IP business in the global market.
Popular webtoons are adapted into different forms of content, including TV dramas, films, and music videos. These digital comics have gained recognition as valuable intellectual property due to the increasing number of adaptations based on digital cartoons.