King prices IPO at $22.50; Zynga -1.8% AH

King Digital's (KING) IPO price is at the middle of a $21-$24 range. That suggests buyers have taken a cautious approach to the offering on account of growth concerns.

The IPO price spells a valuation of $7.1B, or just 3.6x 2013 bookings. King raised $349M by selling 15.5M shares, and is selling 6.7M on behalf of existing holders.

Shares begin trading tomorrow. Zynga (ZNGA) is lower on news of King's pricing, after moving higher in regular trading.


Previous: King's F-1 shows big numbers, Q4 slowdown

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Comments (9)
  • Stone Fox Capital
    , contributor
    Comments (10098) | Send Message
    anybody that expected higher prices are clueless. King like ZNGA needs to show it can take the next step for a higher valuation.
    25 Mar 2014, 06:08 PM Reply Like
  • Sebanightwish
    , contributor
    Comments (1154) | Send Message
    This is stupid, really.
    Some freak guy buy this ridiculous shares?
    25 Mar 2014, 06:14 PM Reply Like
  • Bioalchemy
    , contributor
    Comments (179) | Send Message
    Another money shredder, nowadays people have strong interests in junk assets, thanks to our QE forever.
    25 Mar 2014, 07:10 PM Reply Like
  • Value Growth Investor
    , contributor
    Comments (198) | Send Message
    Social gaming companies like Zynga, King or Glu's revenues are entirely dependent on the success of their games. They have to make good games year after year to maintain their revenue and net profit growth.


    It's far safer to invest in Google and Apple since they earn 30% of all revenues from apps and mobile games from companies like Zynga, King and Glu, regardless of the success of their games.
    25 Mar 2014, 07:25 PM Reply Like
  • haleiwahu
    , contributor
    Comments (4011) | Send Message
    The only product ZNGA is successful in producing is hype. I am still waiting to see why their stock value is increasing and still waiting to see what NaturalMotion has brought to the table!
    25 Mar 2014, 10:39 PM Reply Like
  • hahaha48
    , contributor
    Comments (1412) | Send Message
    I have play sugar crush and spend quite a bit of money on it. But today it is no longer as popular as 6 months ago. I am predicting this stock will crash in 5 years.
    25 Mar 2014, 11:46 PM Reply Like
  • Tales From The Future
    , contributor
    Comments (7633) | Send Message
    Five years? I doubt the CC craze can last that long. I think KING will come back to earth a lot sooner.


    A vaulation of $7 billion (likely to rise in this crazy market, we will soon see) makes no sense to me given the lower valuation of established traditional and casual game companies.
    26 Mar 2014, 02:43 AM Reply Like
  • Green Plum
    , contributor
    Comment (1) | Send Message
    I love CC. Stuck on level 256. Doubt If I will be giving any of my $ to King. See the stock around $5 in a couple of years.
    26 Mar 2014, 06:28 AM Reply Like
  • Breezy Breeze
    , contributor
    Comments (55) | Send Message
    Well a high percentage of KING revenue came from candy crush and that game is losing steam right about now. They'd have to have wary more profitable games to support that share price IMO. Im not gonna get on this one. Good Luck to all who do ..
    26 Mar 2014, 07:29 AM Reply Like
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