NEW YORK (TheStreet) -- The Candy Crush Saga hasn't completely soured investors on IPOs. Renaissance IPO ETF (IPO) was among the most discussed tickers on investing social network StockTwits Monday, despite last week's disappointing initial public offering of gaming company King (KING). Some investors are looking forward to the upcoming IPOs of a Mediterranean restaurant chain and a biotech firm with a promising cancer drug delivery system.
The enthusiasm for IPOs was somewhat surprising given the recent King performance. The company fell 15.6% on its first day of public trading. That was the worst first-day loss in 15 years, according to Renaissance Capital.Investors on StockTwits.com said King, which makes the blockbuster Candy Crush game, didn't warrant the $7 billion valuation implied by its $22.50-per-share IPO price. However, some investors also said the sharp selloff was overdone. The stock traded at $18.43 by midday Monday after rising 2% intraday.
$KING One game makes a TON of money.... is this negative or positive? Maybe we can draw more positives from it? Everyone so bearish here-- Jesse Beahm (@Beahmer) Mar. 31 at 01:23 AM
On Monday, investors looked forward to upcoming IPOs with less lofty valuations. Mediterranean restaurant chain Zoe's Kitchen set the terms for its initial public offering Monday that would value the company at around $221 million. The company plans to trade on the NYSE under the ticker ZOES. THE IPO price will be between $11 and $13. Zoe's is not profitable, but revenues are growing. The company posted a net loss of $3.7 million in 2013 as it has opened more restaurants. Zoe's now operates 111 restaurants, up from 21 locations and five franchises seven years ago. It made $116.4 million in sales last year and is growing at a compound annual rate of 38.1%, according to an SEC filing. That growth rate includes new stores. Comparable store sales grew at a more modest 6.9%. Still investors are excited.