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Archive for December, 2011

Zynga sets offering price at $8.50 to $10

Sunday, December 4th, 2011

All right folks.. Zynga IPO is coming soon. The company sets the offer price in $8.50 – $10 range. The IPO is expected to hit Nasdaq in mid-December under the ticker ZNGA.

Zynga recorded earnings of $30.7 million for the first nine months of this year, on revenue of $828.9 million. It’s anybody’s guess whether Zynga will go in the way of LinkedIn that trades better than its debut price or Pandora that trades 33% lower than its debut price. I would be a buyer if Zynga really trades at $9 – $10 range on the first day. Zynga’s underwriters have an option to sell additional 15 million shares if the demand is strong. If the underwriters artificially increase the demand and hike the stock price, it’s better to stay away from that game. You can play Zynga games, but don’t play with your money! If the stock shoots up to unreasonable level on the first day, wait till it comes back down to earth.

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