King Digital Entertainment, the company that made the popular Candy Crush game has revealed that its IPO price is $22.50 per share which means the company that made “Candy Crush Saga” is valued at $7.08 billion.
Kind has offered 22.2 million share in the IPO and this will bring in about $500 million if the IPO is subscribed at that price.
King Entertainment was founded in 2003 in Sweden and in this IPO will be selling 15.3 million ordinary shares and the rest of those 22.2 million shares will be sold by the existing stockholders like Apax Ventures.
There will be a challenge for King to avoid the fate of gaming company Zynga that lost half of its valuation after going public in 2011 at a value of $7 billion.
However, King hopes that it can avoid Zynga’s fate because Zynga was mostly a desktop based game and with the shift to mobile, it lost its appeal. However, King has more focus on mobile gaming market which is by a few estimates of the size of $17 billion.
Lead underwriters for the King IPO are Credit Suisse, JP Morgan and BofA Merril Lynch.