Social-gaming publisher King doesn’t rule Wall Street.
The Candy Crush Saga maker had a rough first day trading on the New York Stock Exchange. The company went public and introduced its stock at $22.50. At the closing bell, its shares were trading at $19, which is down more than 15.5 percent. It continues to hover around $19 in after-hours trading as investors are seemingly looking back at Zynga to inform how they should look at King.
That makes King the worst initial public offering debut of 2014. Other companies that had disappointing IPOs include Eagle Pharmaceuticals (down 14.4 percent), UniQure (down 14 percent), and EP Energy (down 9.6 percent).
“I wouldn’t be here if I was not confident,” Zacconi said. “The company has a great future. We are selling a very small amount of stock. We have been around for a long time. This is not unusual from what I have learned. I am super-confident.”
The stock never got above the $22.50 price that King announced yesterday. Instead, it experienced a steady decline to as low as $18.50 just before the end of trading.
It’s likely that investors are hesitant to buy into King due to its overreliance on Candy Crush Saga, which is its massive social game with 100 million active players. The puzzle game, which has players matching up pieces of sweets, generates millions of dollars for the company — it is actually responsible for 70 percent of the publisher’s revenues. King’s next biggest game, Pet Rescue Saga, only has 15 million monthly active users.
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