Shares in Krafton, the developer of the popular game PUBG, fell sharply on its first day of trading on Tuesday after the company raised $3.8 billion in an initial public offering, the second-largest IPO in South Korea's history.

Shares in the carpenter group, which sold at 498000 won, tumbled as much as 20% in early trading on Tuesday and fell 16% as of 10:00 Seoul time, with a market capitalization of about 20.4 trillion won ($17.8 billion). The company has cut its IPO funding target by more than Won1tn because of concerns that valuations and almost all revenues are dependent on PUBG.

Kui Carpenter Group is the second largest listed company in South Korea, after Samsung Life Insurance's $4.3 billion IPO in 2010. The company's listing brings its market capitalization to a level similar to that of some of the region's largest game developers, including Nexon, worth about $17.2 billion, and NCSoft Corp, which is worth about $15.7 billion.

However, the company is unique in its heavy reliance on a game, with PUBG accounting for 96.7% of its total sales in the first quarter of this year.