Candy Crush Saga creators price IPO at about $7 billion (update)

Candy Crush Saga developer King Digital Entertainment announced the price of its initial public offering of the game at $22.50 per share, valuing the company at roughly $7 billion, The Wall Street Journal reports.

The company is aware of investor concerns that most of King's success is based on the Candy Crush title alone. A regulatory filing from the developer warns interested investors that "a small number of games currently generate a substantial majority of our revenue."

During the developer's fourth quarter of 2013, the company listed Candy Crush Saga, Pet Rescue Saga and Farm Heroes Saga as its top three games that account for 95 percent of its total gross. Candy Crush Saga accounts for 78 percent of that.

"We must develop new games and enhance our existing games so that our players will continue to play our games and make purchases of virtual items within our games," King said.

"Our continued growth will depend on our ability to regularly develop new games and enhance our existing games in ways that improve the gaming experience for both paying and non-paying players while encouraging the purchase of virtual items within our games."

King filed for a public offering with the U.S. Securities and Exchange Commission in February, with a potential worth of around $500 million. This follows initial plans for the IPO in 2013 which led to the hiring of a chief financial officer, Hope Cochran, to assist with managing the company's business. For more on King, check out our report on what the company's "candy" trademark filing really means.

Update: Two hours into trading on Wednesday, King's share price was down more than 10 percent from the $22.50 it set on Tuesday.