South Korea's Krafton (formerly Bluehole Studio), the developer of popular video game Playerunknown's Battlegrounds (PUBG), is expected to hit the Korea Exchange (KRX) in mid- to late-June, and raise $5 billion in its IPO.

According to the KRX on Friday, Krafton's IPO plan has received preliminary approval.

Krafton plans to sell 20% of its shares in the IPO, raising at least $5 billion. On that basis, Krafton's total market capitalization will reach $25 billion, with Tencent as the second largest shareholder with a 10% stake, according to Reuters

If Krafton can successfully be listed, its IPO could become the largest one in South Korea since Samsung Life Insurance Co., Ltd. went public in 2010.