King Digital Entertainment, maker of the popular mobile game Candy Crush, expects to raise up to USD 612.7 million in an initial public offering of shares. In an amended prospectus filed with the US SEC, the company set a price range of USD 21-24 per share for the sale of 22.2 million shares. If an over-allotment option of 3.3 million shares is exercised, the maximum proceeds at the top of the price range would be USD 612.7 million.
King's current shareholders will sell 6.67 million shares in the IPO, and the company will issue 15.53 million new shares for sale, equal to a 4.9 percent stake in the group. This put the company's own potential proceeds at USD 326.1-372.7 million, while the market capitalisation at the mid-point of the price range would be just over USD 7 billion.
The IPO is aimed at creating a public market for King's shares, allowing existing shareholders and employees a way to divest shares, as well as raising capital for further development and possible acquisitions. King's shareholders include Apax Partners and Index Ventures as well as many of its directors.
