King Digital Entertainment Expects To Price IPO In $21 - $24/shr Range

(RTTNews) - King Digital Entertainment Plc, an interactive entertainment company for the mobile world, said in a regulatory filing Wednesday that it expects to price its initial public offering between $21.00 and $24.00 per share.

King Digital Entertainment is offering 15.53 million ordinary shares and the selling shareholders are offering about 6.67 million ordinary shares. The company said it will not receive any proceeds from the sale of the shares by the selling shareholders.

The company noted that it have applied to list its ordinary shares on the New York Stock Exchange under the symbol "KING."

The underwriters have an option to purchase a maximum of 3.33 million additional ordinary shares from the selling shareholders, less the underwriting discounts and commissions, to cover over-allotment shares, if any. The underwriters can exercise this option at any time within 30 days from the date of this prospectus.

The company estimates that it will receive net proceeds from this offering of $326 million, based upon an assumed initial public offering price of $22.50 per ordinary share, the midpoint of the price range, after deducting estimated underwriting discounts and commissions and estimated offering expenses payable by the company.

The company plans to use the net proceeds from this offering for working capital and other general corporate purposes, which may include acquisitions.

"The principal purposes of this offering are to create a public market for our ordinary shares, increase our visibility in the marketplace, as well as to obtain additional capital," the company said.

According to the company, In December 2013, an average of 128 million daily active users played its games more than 1.2 billion times per day and, in February 2014, an average of 144 million daily active users played its games more than 1.4 billion times per day. In the fourth quarter of 2013, 73% of its gross bookings were derived from its mobile audience. The company's leading games include Candy Crush Saga, Pet Rescue Saga, Farm Heroes Saga, Papa Pear Saga and Bubble Witch Saga.