King Digital Entertainment, the largest game developer on Facebook and maker of the popular mobile video game Candy Crush, announced terms for its IPO (initial public offering) on Tuesday and has raised $500m valuing the company at $8bn on a fully-diluted basis. It is due to float on the New York Stock Exchange on Wednesday. The 'Irish' company was founded in Sweden, has its operations in London, and registered office in Dublin where it doesn't even have a phone line, providing its London number in its regulatory filings.
The registered office to avail of Ireland's low corporate tax rate, is located at Fitzwilton House, Wilton Place, Dublin 2, Ireland and the telephone number is +44 (0) 20 3451 5464 - - a London number.
King sold 22.2m shares for $22.50, the midpoint of a $21 to $24 range published by the company two weeks ago.
The business model is similar to Zynga's, the maker of the Farmville game, that was once popular on Facebook but has fallen on harder times since.
Candy Crush has been stunningly successful and about 4% of players pay for in-app upgrades and virtual items to help them progress through a game. The FT says King has three games in the top 10 most lucrative apps available on Apple’s App Store and Google Play for Android devices, but Candy Crush remains by far its most popular title.
King's revenues rose from $164m in 2012 to $1.9bn in 2013, mainly due to the popularity of Candy Crush.
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