Candy Crush developer due to price IPO

|By:, SA News Editor

King Digital Entertainment (KING), the developer of the "Candy Crush Saga" hit mobile computer game, is due to price an IPO today.

King is offering 22.2M shares at $21-$24 each, which would give it a valuation up to $7.6B.

However, some investors are wary. "The red flag for this IPO is that King's revenues and fortunes are built on one game," says wealth manager Michael Yoshikami."

Zynga's post-IPO woes are another warning sign.

Still, SA author Dan Scott provides the bull case for King, writing that you "could reasonably make the case that its shares are worth $45."

Either way, King's peers and potential IPO candidates, Kabam and Kixeye, are likely to be watching with interest.

ETF: IPO