Yesterday, the internet was abuzz with speculation about a Zynga initial public offering filing. Alas, it didn’t happen, but speculation continues. Hope remains that the social gaming company will file with the SEC today. Continuing a trend in the tech IPO market, a small float is expected – Zynga apparently plans to offer approximately 10 percent of its shares. The expected market cap would be in the range of $15 billion to $20 billion. LinkedIn and Pandora also had small floats.
Like Pandora and LinkedIn, as well, Zynga’s expected IPO valuation continues to trend higher. Previously, a market cap of $10 billion was anticipated, and the latest numbers could put the end result at twice that amount.
Zynga has been growing aggressively over the past year, more than doubling its headcount to more than 1,500 and developing a presence in six countries.
So, what would an IPO look like? It’s hard to say. LinkedIn delivered impressive gains its first day, some of which have since been given back. Pandora spiked fast in the early hours of trading, only to return to its initial price (and eventually below it).