News

King's market debut opens at 10% below IPO price

King's market debut opens at 10% below IPO price

King's debut on the NYSE todayopened at a price of $20.50 – 10 percent lower than the firm's original offering price of $22.50.

Shares also fell by as much as 15 percent during their trading debut according to Reuters, owing to concerns from potential investors that the company is a one hit wonder.

Though hardly disastrous for the social gaming giant, King's sour start is not exactly a ringing endorsement for the Candy Crush Saga developer's future prospects in the market, either.

Nevertheless, commentators have been quick to suggest that, overall, King's IPO is a sign of how quickly the mobile games industry is maturing.

Positive play

That's according to IHS mobile analyst, Jack Kent, who believes that the firm's stock market debut, coupled with larger advertising campaigns, proves there is a growing appetite for mobile games.

"King's ascent to the top of the mobile charts has been swift. Already an established web game developer, King made its first significant mobile moves in 2012," explained Kent.

"Since then, mobile games have grown from 9 percent of 2012 revenues to 70 percent in 2013. King’s revenues from online games have also grown and its experience of building titles for users across multiple platforms has been key to its success."

No guarantees

While there's no doubt that King has been one of a clutch of studios that has raised the bar in terms of the levels of success mobile studios can meet, potential investors will still be concerned by the firm's reliance on Candy Crush Saga.

In response, the developer has indicated it's confident it can replicate the title's success.

King will be looking to rise high on the NYSE

"Candy Crush Saga will not remain a permanent cash cow and King must prove it can repeat this success with new titles," said Kent.

"King claims to have developed technology and a structure that will help it find repeat success, and it has a longer track record of developing popular games across platforms than many competitors.

"[However] there are no guarantees it can repeat its Candy Crush success."

What do you call someone who has an unhealthy obsession with video games and Sean Bean? That'd be a 'Chris Kerr'. Chris is one of those deluded souls who actually believes that one day Sean Bean will survive a movie. Poor guy.

Comments

No comments
View options
  • Order by latest to oldest
  • Order by oldest to latest
  • Show all replies