SEOUL -- Game developer Krafton has confirmed its initial public offering price at the top of its suggested range, paving the way for it to become South Korea's second-biggest IPO.

Krafton, best known for its battle royale game PlayerUnknown's Battlegrounds, or PUBG, said Thursday that it would offer 8.7 million shares at 498,000 won ($434) per share, as 95% of institutional investors were willing to buy the stock at that price or higher.

The company may raise 4.3 trillion won ($3.7 billion) from the IPO on the country's benchmark Kospi exchange, an amount that would lag only the 4.9 trillion won raked in by Samsung Life Insurance in its 2010 market debut.

Individual investors can bid for the Krafton shares on Monday and Tuesday, before the scheduled listing on Aug. 10. Krafton employees are also eligible to purchase 20% of the shares on offer.

"We had a very positive evaluation by investors at home and abroad regarding Krafton's competitiveness and values," CEO Kim Chang-han said in a statement. "Krafton will continue to present our potential for expansion and growth in the future."

The price-setting announcement came after South Korea's financial regulator in June demanded that the company correct its IPO prospectus on questions over its valuation. Krafton cut its IPO price target by more than 10% earlier this month, yielding to the pressure by the Financial Supervisory Service.

Krafton said that long-term investors, including foreign pension funds, participated in the company's book-building, or price-setting, process, expressing interest in the company's leadership in the battle royale game genre.

The game developer said that it will use 70% of the proceeds from the IPO to buy gaming intellectual property, as well as on mergers and acquisitions of global game development studios. Krafton will invest the remainder in expanding its presence in emerging markets such as India, the Middle East and North Africa.