King Digital Entertainment, the gaming juggernaut behind Candy Crush Saga, priced its IPO on Tuesday at $22.50—a figure that would value the company at more than $7 billion. That's almost exactly the same as Zynga's valuation at the time of its IPO.
With more than 500 million people having downloaded Candy Crush, there is little question the game is a legitimate mobile phenomenon, responsible for 78% of King's revenue, thanks in large part to in-app purchases. Analysts are wary, however, about tying the company's profits to a single title, and questions remain: Does King have another hit in it to warrant investor confidence?
To its credit, the company thinks it has plenty to be optimistic about with its growing portfolio. "We have more than 150 games on our website, and eight games on Facebook," Tommy Palm, the co-creator of Candy Crush, told Fast Company back in February. "We've found a good recipe for us to try out new things and keep on innovating."
On Wednesday morning, the stock began trading at $20.50, falling 8.9% below its IPO price. As of this writing, the stock is trading at around the $20 mark. It is trading on the New York Stock Exchange under the ticker KING.