Candy Crush Saga developer King closed trading after its first day on the New York Stock Exchange, and Bloomberg reports that the results are one of the worst IPO offerings in the last six months.
Starting the day, King’s stock sat at a comfortable $22.50 a share, but fell a grand total of 15.56 percent by the time all was said and done. Enthusiastic analysts were expecting it to jump 15 percent, so at least they got the number correct. Just in the wrong direction.
King finished the day at $19 a share, and despite the heavy hit its stocks took, King and its investors managed to raise the $500 million they were looking for. Before the IPO, King was worth roughly $7.09 billion but it lost about $1.1 billion in market cap on Wednesday.
“It almost stood no chance,” analyst Scott Sweet told MarketWatch. “It wasn’t surprising. It’s getting pounded.” He blamed the effects of “extremely fast money.”
Other industry watchers have criticized the company for being a one-trick pony, and argue that it leans too much on Candy Crush Saga, a product which could lose consumer interest very quickly. Comparisons are already being drawn to Zynga, the last social gaming company to go public, and its disastrous IPO back in 2011.
Although we aren’t exactly sure how much of a tangible effect it had on the IPO process, we wonder if King’s recent push to trademark the word “candy,” smother anyone using the word “saga,” and the lawsuits impending because of these maneuvers had something to do with this unfortunate turn of events. Remember kids, there is such a thing as bad publicity.