Japanese mobile messaging service Line files for IPO in Tokyo at $10B valuation

Line Corp, the company that owns and operates free call and messaging app Line, has filed for an initial public offering (IPO) on the Tokyo Stock Exchange at $10 billion valuation, according to a report by Reuters quoting sources.

Line, controlled South Korea's Naver Corp, is planning to list either in Japan or the US, or both. As per this report, Line has already hired Nomura Holdings Inc and Morgan Stanley to manage the IPO in Tokyo and is also considering listing in New York. The parent company favours preferred share sale to avoid a takeover.

Line develops and operates the Line app for smartphones. It enables free one-to-one and group messaging, as well as free domestic and international voice and video calls. Line also includes a wide array of social elements such as fun and expressive stickers and family games. The company recently added features such as games, comics, free voice and video calling, and photo & video sharing.

The firm claims the app has grown into a global service used in 230 countries since launching in June 2011. Line has more than 480 million users currently, of which about 85 per cent are located outside Japan.

As of December last year, Line had 15 million users in India. Early this year, Line appointed Damandeep Singh Soni as head of its India business development.

Line competes with WhatsApp, Hike and WeChat among other players in the business.

(Edited by Joby Puthuparampil Johnson)