Following recent rumours that mobile gaming developer and publisher King.com, best known for the hit puzzle game Candy Crush Saga, had cancelled its plans for an IPO, several news agencies including Reuters are out today saying that King.com aims to raise up to USD 500 million in an initial public offering.
The Dublin-based company with Swedish roots had filed confidentially for an IPO with the U.S. Securities and Exchange Commission in September 2013 under the Jumpstart Our Business Startups (JOBS) Act.
King offers more than 180 games in 14 languages through mobile phones, Facebook and its own website. The company says its games are played more than 1 billion times a day.
Candy Crush Saga, which involves moving candies to make a line of three in the same color, was the top downloaded free app of 2013, and the year’s top revenue-grossing app. The basic games are free, but players need to pay for add-ons or extra lives. Candy Crush Saga has been downloaded more than 500 million times since its launch in 2012.
JP Morgan, Credit Suisse and BofA Merrill Lynch are among the lead underwriters. (http://link.reuters.com/xax86v)
King plans to list its common stock on the New York Stock Exchange under the symbol “KING”.
The amount of money a company says it plans to raise in its first IPO filings is used to calculate registration fees. The final size of the IPO could be different.
We believe that this will shift investors’ focus towards the mobile gaming sector in general. With not that many pure mobile gaming companies out there, we believe among the beneficiaries will be names like G5 Entertainment (listed in Sweden), Glu Mobile (USA), Gameloft (France) and CMGE (China, ADR listed in USA).