Zynga to Raise up to $1 Billion in IPO
NEW YORK - Social games maker Zynga early on Friday made key terms of its IPO official.
The company behind such games as CityVille, Mafia Wars and FarmVille, plans to raise as much as $1 billion by selling 100 million shares at a price of $8.50-$10, according to an updated regulatory filing. In comparison, Google raised $1.9 billion in its IPO.
Under ticker symbol ZNGA, the stock is expected to start trading on Nasdaq by Dec. 16. Assuming a $10 per share price, Zynga would be valued at nearly $7 billion, according to the Wall Street Journal.
The company, led by CEO Mark Pincus, is launching its so-called road show to market the IPO on Monday.
Pincus currently holds a 38.2 percent stake in Zynga and will hold 37.4 percent after the IPO, according to the filing. He won't sell shares, but he will in the IPO lose voting power over a block of 350,000 shares owned by Digital Sky Technologies, the investment firm founded by Yuri Milner who has also been an investor in Facebook, Twitter and Spotify.