Join our community of traders FOR FREE!

  • Learn
  • Improve yourself
  • Get Rewards
Learn More

The maker of the popular “Candy Crush” smartphone game – King Digital Entertainment Plc made an official statement, revealing that it managed to raise 500 million dollars in its initial public offering. The valuation of the company after its IPO was 7.09 billion dollars.

According to the companys statement, King Digital entertainment Plc and its shareholders Apax Partners LLP and Index Ventures offered its shares for 21 to 24 dollars per share and managed to sell 22.2 million shares at a price of 22.50 dollars each. The sale raised $350 million for King and another $150 million for its early investors.

As Bloomberg reported, the publicly traded peers of the company, such as Giant Interactive Group Inc. and Zynga Inc. have been offered the shares at a discount.

The company posted a 2013 profit that is estimated to 567.6 million amid a revenue growth, which reached almost 1.9 billion dollars. It looks like King is looking at a relatively modest valuation unlike some of its peers. The estimate of Sterne Agee & Leach Inc. shows that King Digital Entertainment Plc will debut at a multiple of 2.7 times forecast sales. One of the analysts working for Sterne Agee – Arvind Bhatia – also projected that the 2014 revenue of the company will amount to 2.62 billion dollars.

According to the details about the IPO, as much as 78% of the annual sales of the company are generated by its “Candy Crush” game, and more precisely, by the purchases of virtual items such as additional content, extra lives, etc., which are sold at about 1 dollar each. The game is reported to have 97 million active users on a daily basis.

Mr. Rob Romero, who works as a portfolio manager for Connective Capital Management LLC commented for the Wall Street Journal: “Theyre being honest with investors regarding their slowing growth rate, which I think is helpful. They need to be able to generate new games and successfully develop and market their new-game pipeline to replace the revenue that will inevitably be lost when Candy Crush begins to decline. And they have such a pipeline.”

A spokesman of King Digital Entertainment Plc refused to make any comments on the assessment the company got from investors and analysts, explaining that the company prefers to stay quiet during the period around its initial public offering.

TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action and Social Trading.

Related News

  • Natural gas trading outlook: futures decline on extended weather forecastsNatural gas trading outlook: futures decline on extended weather forecasts Natural gas fell for a second day on Tuesday as weather conditions across the US remained on track to significantly improve starting March 10th, spurring bearish longer-term weather sentiment.Natural gas for delivery in April fell 1.15% to […]
  • Rivian Automotive plans to manufacture battery cells in-houseRivian Automotive plans to manufacture battery cells in-house Amazon.com Inc- and Ford Motor Co-backed Rivian Automotive, which at present sources batteries from Samsung SDI, intends to manufacture battery cells of its own, the company’s filing for an initial public offering in the United States […]
  • Copper futures hit 3-month low on Fed stimulus outlook, China outputCopper futures hit 3-month low on Fed stimulus outlook, China output Copper fell for a third day to the lowest since August on speculations the Federal Reserve might scale back its monthly bond purchases earlier than expected. Comments by a senior Fed official saying he wouldnt rule out a tapering decision at […]
  • Forex Market: GBP/USD trading outlook for September 15th 2016Forex Market: GBP/USD trading outlook for September 15th 2016 Yesterday’s trade (in GMT terms) saw GBP/USD within the range of 1.3139-1.3243. The pair closed at 1.3235, edging up 0.30% compared to Tuesdays close. It has been the 155th gain in the past 338 trading days. The daily low has been a level […]
  • AUD/JPY gains as BoJ puts an end to negative ratesAUD/JPY gains as BoJ puts an end to negative rates The AUD/JPY currency pair registered modest gains on Tuesday in the wake of central bank policy decisions in Japan and Australia.The Bank of Japan put an end to an eight-year period of negative interest rates. The BoJ raised its […]
  • Forex Market: EUR/CAD daily trading forecastForex Market: EUR/CAD daily trading forecast Yesterday’s trade saw EUR/CAD within the range of 1.3484-1.3603. The daily high has also been the highest level since March 10th, when a high of 1.3692 was recorded. The pair closed at 1.3554, up 0.41% on a daily basis and extending gains from […]