By Adam E. John
Zynga has filed an amendment with the SEC to the effect that it wants to sell 100 million Class A shares or roughly 11 per cent stake, in the region of $8.50 to $10 per share. Zynga expects the IPO to raise around $1 billion. This update also kicks off Zynga’s road show, which starts next week. Zynga can be expected to start trading around the second week of December.
Zynga’s valuation was hovering in the region of $14 billion couple of weeks ago, but looks like the company is already slashing prices. Zynga’s IPO is among the most-awaited IPOs of the season; especially after Groupon’s debut. Groupon started out its public offering rather well, but its shares have been performing at about half its market high since then.
footNote: IDC estimates there will be approximately 1.1 billion users of social networks globally, including over 800 million active users on Facebook, in 2011. Number of users on social networks globally is expected to grow to 1.6 billion by 2014. Most social games are free to play and generate revenue through the in-game sale of virtual goods.