Advertisement

Zynga Prices IPO at $8.50 to $10 a Share

Public debut could raise $925 million
Advertisement

Capping off a year of highly anticipated tech IPOs, social gaming company Zynga is expected to make its public debut next week, with a lower than expected valuation.

According to documents filed Friday with the SEC, the company plans to offer 100 million new shares, priced between $8.50 and $10 each. At that range, the company would raise about $925 million and be valued at as much as $7 billion. Previous estimates valued the company at as much as $14 billion.

Industry investors were bullish about Internet IPOs earlier this year, but the mood has shifted as newly public companies like Pandora and Groupon have fallen below their offer price.

Zynga initially filed IPO documents with the SEC this summer but, like Groupon, was asked to amend its filing after the commission found a “material weakness” in its accounting method.

In its most recent SEC Filing, the company behind popular games like FarmVille and Mafia Wars said it has 54 million daily users in 175 countries. The company is expected to price its shares Dec. 15 and begin trading on the Nasdaq Dec. 16, Reuters said.