Zynga Raises $1B, Pricing IPO at Top of RangePosted on December 16, 2011 by Bloomberg in Business & Marketing, Tech & Gadgets
Zynga Inc., the largest maker of games for Facebook Inc.’s website, raised $1 billion in its initial public offering, pricing the shares at the top of the marketed range.
The developer of games such as “CityVille,” “FarmVille” and “Mafia Wars” sold 100 million shares for $10 each, Zynga said in a statement. The company had offered the stock for $8.50 to $10 apiece. It will start trading today on the Nasdaq Stock Market under the symbol ZNGA.
The offering is the biggest by a U.S. Internet company since Google Inc. (GOOG) raised $1.9 billion in its 2004 IPO, data compiled by Bloomberg show. The game maker’s increasing ubiquity and expansion prospects appeal to investors, according to Colin Sebastian, an analyst at Robert W. Baird & Co. in San Francisco.
“Zynga and its games are becoming consumer brands and there is a lot of recognition for growth potential,” he said. “My guess is that the shares will be well-received.”