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Tech

'Line' set to trade in year's biggest tech IPO

Opening sequence

Opening sequence

Tech

'Line' set to trade in year's biggest tech IPO

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COMING UP:'Line' set to trade in year's biggest tech IPO

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Transcript

00:00:01
>> You might not have heard of it, but this company is poised to be tech's biggest IPO so far this year. Line is a Japanese mobile messaging app launched in 2011 to help people communicate after the earthquake and tsunami. It starts trading in New York Thursday and Tokyo, Friday.
00:00:20
And investors are eager to get a piece. Reuters tech correspondent, Heather Summerville.>> I think Line is a deal that underscores this frenzy around messaging apps. There's a lot of demand from users, as well as investors for these types of messaging for services, where you can send videos and pictures, make payments, do things of that nature.
00:00:43
DCM Ventures, which is a venture capital firm, invests both in the US and China has talked to me about, they are hungry for messaging apps and new platforms, they really wanna put their money into.>> Demand has been even stronger than expected for shares of Line, known for emojis and electronic stickers which generate the bulk of its revenue.
00:01:03
It's on track to raise $1.3 billion, putting this IPO in a league of its own.>> In any year 1.3 billion would be a big deal. But this year, that has been so lackluster, so sleepy for tech IPOs, it really blows everything else out of the water. The last one we had was Twilio, a very good strong tech company.
00:01:25
It raised $150 million in a strong IPO. Before that was SecureWorks, it raised $112 million. So you can see by comparison, this IPO is above and beyond anything we've seen this year.>> The decision to trade in New York and Tokyo offers a hint at its global ambitions.
00:01:44
The app has well over 200 million active users, even though it's only available in handful of countries. And in case you were wondering, the US and UK are among them.