Popular SMS Messenger Giant Line is reportedly going IPO this year. Line has made huge strides with their platform as they have grown their registered users to a mammoth 560 Million. They are currently experiencing 212 Monthly Active users and have reported over $1.02 Billion in 2015 (20% of revenue coming from Stickers) Compared to 2014 [$656 Million] LINE’s revenue has increased 40% year to year, and is showing no signs of slowing down.
As their IPO dominates the Asian headlines in the IT sector, based on initial discussion their market evaluation can be anywhere up to $30 Billion, and it said their they are looking to go IPO in New York and Tokyo Market. I don’t know how this is going to work out but it seems Line is going to be setting up a new IPO company for this purpose specifically.
It seem that the filing process is still in its early stages and not much can be reported but its looking more and more likely they will be going IPO in Q3 or Q4 of 2016.
For those looking at Line as a potential growth IPO stock, I’m currently on the fence with this company regarding growth and the over evaluation of IT related IPO the past couple of years. Talking to you, Alibaba, Twitter, and Zynga.
If you actually look at the potential growth for the Line Platform, you can notice possible growth but what needs to be understood of the next 40% – 50% (referring to the current Smartphone penetration rate sitting at 40% -50% penetration rate for first world countries) who look to enter the Smartphone market are the late majority and laggard users with respects to the steps in Adoption of Innovation. What this means is that, the next 40% – 50% of the users are going to be the baby boomers and old folks that don’t necessary understand technology, compared to the X generation and millennials users which is possibly reaching max penetration rate with respects to Smartphone ownership. Therefore how far LINE can extends their user base may depend on how user friendly it can adapt their platform for the older folks.
Either or, I’m still on the fence regarding their IPO potential and possible would require the company to create the next best communication technology to make a significant impact in this industry instead of constantly releasing gimmicky features that add little value to their core product.
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