Zynga Plans to Limit Number of Shares in IPO
Less than 10% of company could be offered for sale
Zynga is planning to greatly limit the number of shares available in its upcoming IPO, reports the New York Post.
According to a source, the social gaming giant could offer less than 10 percent of its shares—less than half of the 24 percent average offered by U.S. tech companies in IPOs over the past year.
LinkedIn used this same strategy of selling few shares in its own IPO recently, which allowed it to raise money for expansion while still keeping control of the company and protecting the value of existing investors’ shares.
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