King Digital Entertainment, developer of the famous Candy Crush Saga, began its public offering on the New York Stock Exchange this morning for $20.50 a share. Since then, King Digital ($KING) has dropped about 12%. It is currently trading at $19.57 a share.
According to Business Insider, King and its earliest investors, such as private equity firm Apax Partners LLP, intend to sell 22.2 million shares, which would raise a little less than $500 million. That’s a lot less than the $7.6 billion valuation we were looking at earlier this month!
Although King Digital has a library of over 180 games, most of its success comes a single game, Candy Crush, which is beginning to decline in popularity. Many believe that the King Digital IPO is reminiscent of that of Zynga, who was momentarily successful during its public offering because of its popular Farmville game, but ultimately fell flat. Flash forward 3 years and Zynga’s still not looking too great. Not so sure if investors will be getting sweet returns from King Digital anytime soon!
Here are a few photos from the NYSE, where King is making its debut with live Candy Crush characters. Photos are courtesy of Business Insider.
What do you think of King Digital Entertainment’s IPO? Will you invest? Let us know in the comments below. If you liked this post, check out these related articles: Is Candy Crush Worth $500 Million? and King Digital: A $7.6 Billion Company? And as always, be sure the visit Sprinklebit for more updates and investment tips!