Will Candy Crush, last or will it totally crash?
After its huge success with its viral Candy Crush Saga, game maker King Digital Entertainment will try to find its luck by trading on the New York Stock Exchange on Wednesday under the ticker symbol KING.
King Digital Entertainment priced its offering at $22.50 per share on Tuesday where the company has raised $500 million, valuing it at more than $7 billion in one of the biggest initial public offerings so far this year.
Potential buyers showed via Twitter their interest in buying Candy Crush, whose initial stock raised in $1.8-billion, reports said.
King, maker of monster hit Candy Crush is an 11-year-old multinational company that has posted huge growth because of this tremendous game. Reports said, nearly 100 million users play Candy Crush and its success has overshadowed King?s other titles, including Farm Heroes Saga and Pet Rescue Saga. With Candy Crush, King Digital Entertainment?s earnings jumped 7,000 percent a year ago to nearly $568 million.
King which is founded in Sweden in 2003 and a relatively unheralded company that became a global phenomenon because of Candy Crush will sell 15.3 million shares in the offering with the rest being offered by selling stockholders, including Apax Ventures.
Meanwhile, King has other titles which are also proving their popularity and success, one of which is ?Farm Heroes Saga?. This game which prepares the user to ?embark on a farming adventure and become the ultimate farm hero? was developed in the London studios and now ranks fourth on the iTunes app store?s top-grossing games drawing 20 million active users each day.
?Companies like King are reliant on hits,? said Mark Little, an analyst at the technology consultant Ovum in London. ?It?s an open question whether they can sustain their success.?
JP Morgan, Credit Suisse and BofA Merrill Lynch are King Digital Entertainment?s lead underwriters for the offering.
Will Candy Crush popularity propel King Digital Entertainment into a huge success again? We?ll see.