King Expects to Raise as Much as $532.8 Million from IPO

March 12, 2014 - GamePolitics Staff

In a filing with the U.S. Securities and Exchange Commission, Candy Crush Saga maker King today said that it plans to price its shares between $21 and $24 for its initial public offering and that it plans to sell 22.2 million shares.

Those numbers mean that the company expects to raise as much as $532.8 million from its IPO, if it chooses to sell shares at the high end of that range, putting its market value up to $7.6 billion. By most standards that's a high valuation when you compare it to the other social game maker that is currently publicly traded: Zynga. Zynga has a current valuation of just over $5 billion.

The new SEC filing also revealed that, as of last month, the company averages 144 million daily active users who played King games more than 1.4 billion times a day.

The company also listed a number of risk factors:

"We have experienced significant rapid growth in our operations, and we cannot assure you that we will effectively manage our growth," the company wrote in its filing.

Another risk factor mentioned by King in its filing is that a "small number of games currently generate a substantial majority of our revenue." The company is referring to its flagship title, Candy Crush Saga, which currently accounts for nearly 80 percent of total gross bookings.

Source: Gamasutra


 
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