King Digital, best known for its highly-addictive mobile game app 'Candy Crush Saga,' could be priced Tuesday night with the stock making its market debut on the New York Stock Exchange on Wednesday.
King Digital is offering 15.5 million shares at between $21 and $24 a share. If it floats at the upper end of that range, its valuation of $7.6 billion would be nearly double Zynga's $4.11 billion market capitalization.
By midday, shares had climbed 2.9% to $4.84. Trading volume of 26.3 million was close to exceeding its three-month daily average of 33.9 million.
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TheStreet Ratings team rates ZYNGA INC as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate ZYNGA INC (ZNGA) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. Among the areas we feel are negative, one of the most important has been weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows: