It's game on for Zynga initial public offering

Wed Nov 30, 2011 4:01pm EST
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by Anthony Hughes and Robert Sherwood

NEW YORK, Nov 30 (IFR) - Zynga is expected to price its shares on December 15 in one of the most highly anticipated IPOs of the year.

The IPO is expected to value the fast growing social gaming company at around $10bn, below some earlier estimates of as much as $20bn.

The company is targeting a pricing range of $8-$10 per share, according to the source.

Though the details are still being finalized, Zynga is likely to sell around 10% of its shares, including both new and existing shares, to the public.

Having risen to prominence on viral games such as "FarmVille" and "Mafia Wars", Zynga is widely expected to file terms on Friday for an IPO that would generate around $900 million in proceeds at the midpoint of the price range, the source said. Underwriters could ultimately upsize the deal based on demand.

The timetable suggests the banks will opt for a standard nine-day roadshow, paving the way for a Nasdaq debut on December 16, a Friday.

Zynga spokesman Adam Isserlis declined to comment.

Another source familiar with the matter told Reuters on Wednesday that Pincus, the CEO, will not sell shares and neither will Kleiner Perkins, one of Zynga's main venture capital backers.   Continued...