King Sets Their Shares Between $21 and $24
Since filing for their IPO in February, King, the producers of Candy Crush, seek a potential of $613 million in IPO. Candy Crush is their top selling game, accounting for nearly 80% of the company’s revenue. In 2013, the game also beat out other top apps, such as Facebook and YouTube, as the most downloaded free app in the app stores.
The company expects the 22.2 million shares to be priced between $21 and $24 under the symbol KING on the New York Stock Exchange. Selling shares at this price has the potential of raising $533 million. This would value the company at over $7 billion. King’s IPO also allows underwriters, such as J.P. Morgan and Bank of America Merrill Lynch, the option of buying an additional 3.3 million shares. This could additionally raise up to almost $80 million.
Since filing for their IPO, many people have been skeptical as to whether or not the game will hold that top position as the top selling app or if it is another one hit wonder.
In the fourth quarter of 2013, King’s revenue started to decline. This could mean that Candy Crush is on its way out. However, games represent seventy to eighty percent of mobile apps, making them a hot commodity to invest in.
The offering is scheduled to be priced on March 25th. In 2011, after filing for an IPO, Zynga performed poorly, having their shares fall about 70% since then. Do you think that King’s IPO will be more successful than previous gaming companies were?
Featured Image Via: forbes.com
