In the most anticipated gaming IPO of the last few years, Candy Crush Saga maker King priced its shares at $22.50 in an offering that will raise $326 million for the company and value it at slightly more than $7 billion. Shares will trade for the first time tomorrow.
That valuation will put King at nearly four times its trailing annual revenue of $1.88 billion. The vast majority of that revenue came from the mega-hit Candy Crush Saga, which pulled in 78 percent of the company’s bookings.
That valuation also makes King worth more than 1.5 times Zynga’s market capitalization and puts it slightly south of EA’s $9 billion market capitalization.
The IPO ends one chapter of the company’s 10-year-long journey and is a big test of public investor appetite for gaming companies. The last notable gaming IPO was Zynga’s, and that company saw its shares decline by about 75…
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