This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

King Digital Entertainment Targets $7.6B Valuation

NEW YORK (The Deal) -- Mobile game publisher King Digital Entertainment said it could raise upwards of $612.7 million in an initial public offering that would value the maker of Candy Crush Saga at $7.6 billion.

The Dublin-based company said in a regulatory filing that it expects to sell 22.2 million shares at between $21 and $24 per share on the New York Stock Exchange in an offering that is expected to price before the end of the month. The company will sell 15.5 million shares in the offering, while existing holders including Apax Partners and Index Ventures will sell the remainder.

Post-deal Apax would own 44% of the company while CEO Riccardo Zacconi would have a 9.5% stake.

King Digital has become a hot topic of discussion among investors arguing whether the broader market has become overvalued. Bulls point to Candy Crush's strong growth, having been downloaded more than 500 million times since 2012 and ranking as the top revenue grossing app in 2013.

Must Read: Softbank's Son Pitches Benefits of T-Mobile Deal

Bears worry the market is overvaluing what could be a one-hit wonder, pointing at rival game maker Zynga (ZNGA - Get Report). That company went public in 2011 at $10 a share but now trades at about half of that value.

King in its filing notes that just three games account for 95% of its total gross bookings and said "our continued growth will depend on our ability to regularly develop news games and enhance our existing games."

JPMorgan Chase (JPM - Get Report), Credit Suisse Group AG and Bank of America Merrill Lynch (BAC - Get Report) are lead underwriters for the offering, joined by Barclays, Deutsche Bank Securities Inc., RBC Capital Markets, BMO Capital Markets, Cowen and Co., Pacific Crest Securities, Piper Jaffray, Stifel, Wedbush Securities and Raine Securities.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
ZNGA $2.13 4.93%
BAC $11.98 -1.80%
JPM $55.52 -1.21%
AAPL $94.27 -0.76%
FB $101.00 1.47%


Chart of I:DJI
DOW 15,914.74 -99.64 -0.62%
S&P 500 1,851.86 -0.35 -0.02%
NASDAQ 4,283.5920 +14.8290 0.35%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs