King Digital Entertainment PLC (NYSE:KING), the developer of the “Candy Crush” serious of games, has dropped on its first day of trading after raising $500 million on its initial public offering. The shares are down over 10% to $19.52 as of around 1:30AM EST.
King.com sold 22.2 million shares at $22.50 each. King.com and its shareholders Apax Partners LLP and Index Ventures offered the stock for between $21 to $24. The IPO price valued King.com at around $7.09 billion. “Candy Crush” is a puzzle matching game that features different types of colored candies that need to be eliminated by players.
Candy Crush has around 97 million daily active users and generates around 78% of the company’s annual sales. King.com generates revenues when users buy virtual items like extra lives. Some of King.com’s other games include “Farm Heroes Saga” and “Bubble Witch Saga.” These games have under 20 million daily users.
According to research from financial analysts, King.com is expected to post around $2.62 billion in revenue this year.