- 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
at Nasdaq.com (Nov 18, 2014)