Video game developer Krafton Inc. is preparing what might be the largest initial public offering in South Korea.

The company said Wednesday it expects to raise up to $5 billion.

The company, partly behind the blockbuster video game "PlayerUnknown's Battlegrounds," said in a regulatory filing it plans to sell as many as 10 million shares. The sale shares include 3 million existing shares and 7 million new shares.

Krafton plans to sell the shares at an indicative price range of 458,000 won to 557,000 won ($409.61 to $498.15) each. If it sells the shares at the top of the range, the initial public offering might overtake South Korea's current largest listing - Samsung Life Insurance's $4.4 billion initial public offering in 2010.

Krafton expects to announce pricing "within the coming weeks." The initial public offering is expected to be launched next month. Mirae Asset Securities Co., Ltd. is lead adviser with Credit Suisse Group AG, NH Investment & Securities, Citigroup Inc. and JPMorgan Chase & Co.

The Tencent Holdings Ltd.-backed company generated billions in sales after it released its online multiplayer war game PUBG in 2017. The company has sold more than 25 million copies of the game since its release - making it one of the fastest-selling games.

Last year, the company generated nearly $1.5 billion in revenue while operating profit more than doubled from the previous year.

Krafton expects its market valuation to exceed $31.2 billion with a price-to-earnings ratio of 45.2. This would place it below the market valuation of its South Korea game industry peers Netmarble Corp. and NCSoft Corp.

The company's largest shareholder, Tencent, holds a 15.35% stake in the company through an investment vehicle.

Krafton plans to release two new video games based on its PUBG intellectual property before its initial public offering. The two games are "PUBG: New State" and "Battlegrounds Mobile India."