Online games maker Zynga Inc is making its debut on the Nasdaq stock exchange today. The company is expected to enter the market on a high note after it priced its initial public offering at the top end of a preliminary range but did not increase the size of the $1-billion offer.
Zynga was expected to raise the price or increase the number of shares on offer in view of the strong demand in recent weeks. The IPO, from the maker of "CityVille" and "FarmVille" games, has been keenly awaited since it was supposed to offer investors a slice of Facebook's growth before the social network went public itself.
Zynga sold 100 million shares of Class A common stock at $10 per share in the IPO, the top end of the $8.50 to $10 indicative range and additionally, certain stockholders have allowed the underwriters a 30-day option to purchase up to an additional 15 million shares to cover over-allotments, according to a company statement issued yesterday.
Zynga would not receive any proceeds from the sale of shares by the selling stockholders.
Of the top five games played on Facebook, four are from Zynga which has over 200 million monthly users. Facebook takes a 30-per cent cut on the revenue from Zynga's games and is expected to go public next year.
According to analysts, Zynga could have easily raised the size and price since the IPO as it was expected to make a strong debut.