Zynga’s IPO raises around $1 billion

Zynga, the games developer founded and led by Mark Pincus, has sold 100 million shares (around 11% of the company) at $10 each in its initial public offering, raising around $1 billion. This is at the top end of expectations. Two weeks ago its bankers projected a range of $8.50 to $10. The IPO values Zynga at around $7 billion, roughly 11 times last year’s sales. A good result, but still far less than recent social network offerings. A valuation of $20 billion dollars was suggested earlier this year. Zynga’s most-senior executives and early investors largely are holding onto their shares.

Zynga makes games mainly for Facebook. Games include FarmVille, Words with Friends, CastleVille, Adventure World and Mafia Wars 2.

USA, San Francisco, CA

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