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Maker of Candy Crush Saga Tries New Game: An IPO

Game-maker King has made confidential S-1 filing


King, which is the maker of the wildly popular mobile game Candy Crush Saga, has filed for an IPO according to a report in The Telegraph. The company plans to list on the Nasdaq and the lead underwriters are expected to include JPMorgan (JPM), Credit Suisse (CS) and Bank of America (BAC).

But there is no S-1 available since King has elected to make a confidential filing with the SEC, which is allowed under the JOBS Act. This approach has become quite popular lately, as seen with companies like Twitter.

Founded a decade ago, King has had a pretty good track record. Consider that it has been profitable since 2005 and has also made a smooth transition to mobile. Its flagship game is No. 1 on both Apple’s (AAPL) app store and Google’s (GOOG) Android platform. In fact, Candy Crush alone has over 15 million daily users who play more than 700 million games per day!

That’s not all, though. It looks like King has managed to come up with another hit: Pet Rescue Saga. It’s the No. 2 top grossing game in Android’s store, behind Candy Crush.

But as seen with the travails of Zynga (ZNGA), the game business can be feast or famine. After all, ZNGA came public in December of 2011 at $10 but it proved to be near the peak of its momentum. The stock has since plunged to $3.70 per share.

Then again, this may not be much of a concern for a King deal. The IPO market has been pretty hot lately and there appears to be no shortage of traders looking for a quick hit.

Tom Taulli runs the InvestorPlace blog IPO Playbook. He is also the author of High-Profit IPO StrategiesAll About Commodities and All About Short Selling. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.

Article printed from InvestorPlace Media,

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