Candy Crush Developer's IPO Turns Sour on Market Debut

 By 
Jason Abbruzzese
 on 
Candy Crush Developer's IPO Turns Sour on Market Debut
Credit: MHJ,Artyzan

King Digital Entertainment is trading sharply lower in its first hours as a public company.

Shares in the maker of Candy Crush Saga moved as much as 15% below its $22.50 opening price on Wednesday morning, indicating that investors have become wary of mobile gaming companies that rely on revenue from hit games.

[seealso slug=http://sale-online.click/2014/02/18/candy-crush-ipo-stats/%5D%3C/p%3E%3Cp%3EThe highly anticipated launch of King shares on the open market included a large flag draped across the New York Stock Exchange.

Mashable Image
Pedestrians walk past a King Digital Entertainment banner hanging on the facade of the New York Stock Exchange in New York, U.S., on March 26, 2014. Credit: Jin Lee/Bloomberg/Getty Images

Candy Crush accounted for 78% of the company's fourth-quarter revenue in 2013, garnering comparisons to other gaming companies like Zynga. King raised just shy of $500 million in its IPO, which valued the company at about $7 billion.

Zynga has also struggled in the market. It currently trades at $4.61, well off its $10 IPO price.

King shares recovered slightly to trade about 9.7% lower at $20.31 in morning trading.

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