- Two underwriters tell Reuters King Digital's (KING) IPO will price on March 25, and begin trading the next day. The company is looking to raise $326M-$372M by selling 15.5M new shares, and is offering 6.7M shares on behalf of existing holders.
- King's $21-$24 price range implies a valuation range of $6.7B-$7.6B, or a fairly conservative 3.4x-3.8x 2013 bookings of $1.98B. The pricing undoubtedly reflects concerns about King's heavy dependence on Candy Crush Saga (responsible for 78% of Q4 bookings and 73% of December DAUs), in spite of the popularity achieved by several of the company's other titles.
- The New Yorker's James Surowiecki: "The company didn’t make eighty times more in 2013 because it had cracked a code; it just caught lightning in a bottle ... Development costs in the game-app world are very low ... As a public company, King will have to show shareholders consistent results and ever-growing profits."
- Peers Zynga (ZNGA +2.4%) and Glu Mobile (GLUU +4.2%) are moving higher today. Excluding cash/investments and the impact of the pending NaturalMotion deal, Zynga, whose bookings have nosedived over the last several quarters, trades at 4.9x 2013 bookings.
- Previous: King's Q4/2013 numbers
From other sites
at Nasdaq.com (Feb 27, 2015)
at Zacks.com (Feb 24, 2015)
at Investor's Business Daily (Feb 13, 2015)
at CNBC.com (Feb 12, 2015)
at Benzinga.com (Jan 12, 2015)
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