The shares of wildly popular messaging application, Line, jumped by 50% on the debut on the New York Stock Exchange last week in what is the biggest technology IPO so far in 2016. The company raised close to $1.3 billion spread across two IPOs, the first being on the Tokyo Stock Exchange last week.
The offering valued the company at $9.3 billion and answered questions about investor appetite for technology stock floatations against a backdrop of a gloomy global economic outlook.
The app, which boasts some 218 million monthly active users in Indonesia, Thailand, Japan and Taiwan is extremely popular and is used for anything from sending payments to streaming music.
“There had been some concerns among investors about the growth potential for Line because, like other social media applications and service, most notably Twitter, the app has been experiencing a falloff in user growth,” said Glen Tse, a technology and social media analyst at ISG Global.
“Line hasn’t had much penetration outside its four core markets where apps like WeChat, Whatsapp and Snapchat are more popular so there is a question mark over how it will grow its user base.”
Line generates considerable revenue from the sale of stickers and emoji but Tse warns that what appeals to Asian users may not translate well across the Pacific in the US. “Japan has a very niche culture that is popular with other Asians but Americans may not be as receptive,” he said
ISG-Global did not recommend the IPO to clients citing concerns over the app’s ability to expand into new markets.

About ISG Global:
ISG Global is an investment advisory firm specializing in private money management that serves the expatriate community in Osaka, Japan. Our focus is working with Individuals and families, with assets of $1 million plus, who have a requirement for wealth management coupled with investment advice. All our clients are serviced by highly professional financial experts with comprehensive exposure to a fast moving financial landscape.

The decision to work with ISG Global expertise, is your first step in determining long term financial goals for you and your family. It's because your security and prosperity matter most to us, that we believe ISG Global is a smart and intelligent choice for high net worth individuals.