The developer of Internet-based games including “Zombie Misfits” and “MapleStory” dropped 3.9 percent to 1,249 yen from its IPO price of 1,300 yen as of 9:33 a.m., compared with a 0.5 percent decline in the benchmark Topix index. Like Zynga, set to sell shares tomorrow, Nexon earns revenue by letting consumers play free games and charging them for virtual goods, including costumes for characters.
For investors looking to tap global demand for virtual goods that’s forecast to reach $20 billion by 2014, Nexon’s main draw may be its presence in China, by then expected to be the world’s largest online-games market. The company got 31 percent of its revenue from gamers in China last year, compared with 35 percent from South Korea, where it was founded, and 18 percent from Japan, according to its prospectus.
“Nexon will be able to count on China even more as the company’s online games win new fans among its larger, faster- growing population,” said Mitsushige Akino, who oversees about $600 million in Tokyo at Ichiyoshi Investment Management Co. “It started outside Japan and may be in a favorable position for global expansion.” For the latest updates on the stock market, visit Stock Market Today For the latest updates PRESS CTR + D or visit Stock Market news Today
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