Today was the public debut of King at the New York Stock Exchange and the share opened at $20.50 per share price. However, it quickly lost 6% and at the close of the market it had lost about 16% value and closed at 19.00.
Kind had just priced its IPO at $22.50 per share yesterday. King had offered 22.2 million shares in its first ever IPO and will raise $500 in equity. King is trading on New York Stock Exchange under the new symbol KING.
The main reason for this poor reception at the stock exchange is King’s reliance on a single game, i.e Candy Crush Saga. Though King has 180 games under its belt but 80% of the revenue for the company comes from single game i.e Candy Crush Saga.
And this reliance on a single game is a red flag for investors who are of the view that gaming companies generally can not come up with newer games and Candy Crush is already a game in decline. The coming days will tell if investors repose confidence in King or keep treating as a one-hit wonder.