Mobile Games Developer Seeks $7.6 Billion Valuation from Stock Market Listing
Published on: 12th Mar 2014
By: Ian Mansfield
King Digital Entertainment the games developer behind the hit mobile game series Candy Crush amongst others is seeking a stock market listing that could value the company at USD7.6 billion.
The Ireland based company said that it will sell 22.2 million shares, raising up to USD553 million for the firm.
It plans to list the shares in the USA, and will use the proceeds for expansion and acquisitions, the firm announced in its IPO filing.
The games developer boasts 12.2 million daily users of the Candy Crush games, although that is a slight decline on the previous three months.
The main revenue stream for the company is purchases for extra features for the games, and that one game represented 78% of the firm's USD1.9 billion revenue during 2013.
Unlike a lot of tech firms seeking stock market listings, King is profitable, having made USD567.6 million in net profits during 2013.
Also, unlike fading games star, Zynga and its Farmville franchise, King is less dependent on the capricious whim of Facebook for its revenues, as King derives most of its income from mobile games.
The company's largest shareholder at the moment is the UK private equity group, Apax Partners, which owns just under half the firm. It would have received around USD230 million in dividends last year from its stake.