LINE Pay made its debut on the Taiwan stock market today, listing at NT$348 per share. The opening price soared to NT$450, and it closed at NT$1,030, representing a surge of over 196% from the listing price. It became the king of the emerging stock market and a stock worth a fortune on its first day.
(Prior summary:
LINE Pay opens up encrypted payment! Japanese users can use “LINK” for transactions.)
(Background supplement:
LINE’s Japanese cryptocurrency exchange “BITMAX” starts operations: Japanese users can log in with LINE and deposit with LINE Pay.)
Perfectly integrated with the popular communication software LINE, LINE Pay, the leading mobile payment platform in Taiwan with the highest market share, made its debut on the Taiwan stock market today.
It is understood that LINE Pay has 12 million users in Taiwan, with 7 million being active users, and the platform’s total Gross Merchandise Volume (GMV) reaching NT$644 billion. The platform is supported by approximately 500,000 stores in Taiwan, and its wide popularity has made LINE Pay the most eye-catching emerging stock case recently.
LINE Pay closed at the highest price of NT$1,030 on its first day of listing.
LINE Pay listed on the emerging stock market at NT$348 per share and was highly sought after by market investors. The opening price jumped to NT$450, and it surpassed the NT$1,000 mark during trading hours. It closed at NT$1,030, representing a surge of over 196% from the listing price, with a trading volume of 445 shares. Lucky investors who bought at the opening price of NT$450 could earn nearly NT$600,000 in profit from a single share.
LINE Pay achieved multiple astonishing records on the first day of listing on the emerging stock market: becoming the king of the emerging stock market on the first day, becoming a stock worth a fortune on the first day of listing, ranking 11th among high-priced stocks in the Taiwan stock market, becoming the third payment stock king, and a market value increase of NT$34.8 billion in a single day.
The key to LINE Pay’s turnaround from loss to profit lies in the effective use of “LINE Points.”
LINE Pay is committed to promoting cashless transactions and e-wallet services. In addition, through cooperation with banks, LINE Pay issues LINE Points as consumer rewards and has established a marketing platform for merchants, striving to build a complete payment ecosystem in Taiwan. Currently, the number of credit and financial cards that can earn LINE Points has reached 7 million. This is the key to LINE Pay’s turnaround.
LINE Pay incurred a loss of NT$280 million and a loss per share of NT$5.28 in 2020. It turned a profit in 2021, earning NT$140 million with an earnings per share of NT$2.68. Its profit doubled in 2022, reaching NT$440 million with an earnings per share of NT$8.04. As of the first 11 months of 2023, LINE Pay has already earned NT$470 million, with an earnings per share of NT$7.92. Now that its stock price has surpassed NT$1,000, its price-to-earnings ratio easily exceeds 100 times.
LINE Points connect the applications of payment, marketing, and consumption. Users can earn points as rewards when they use LINE Pay to make purchases with their linked credit cards. This has attracted many users to participate and provided merchants with sufficient incentives to purchase points for user consumption redemption. LINE Pay also earns revenue through charging merchants and credit card banks through advertisements.
Currently, approximately NT$7.2 billion worth of LINE Points circulate within the ecosystem each year, with a usage rate of 100%. These points not only replace previous subsidies but also attract users to continue using LINE Pay. By linking users, merchants, and partner banks, Chen Hsiung, the chairman of LINE Pay, clearly stated, “LINE Pay’s positioning is not just a payment tool.”
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