Social media game developer Zynga announced the terms for its initial public offering (IPO) on December 2.
The long-awaited initial public offering plans to issue 100 million shares with a price range of $8.50 to $10.00. If stock options and existing shares are counted, the company has 904 shares outstanding, Reuters reports.
Selling the shares at the bottom of the price range would raise $850 million and provide the company with a valuation of $7.7 billion, whereas pricing the shares at the top of the range would raise $1 billion and provide the company with a value of $9.04 billion.
Zynga was originally planning a larger IPO but decided to downsize its plans in order to avoid following Pandora and Groupon, which both sank after their primary offerings, according to Bloomberg. Renaissance Capital reports that Zynga is pricing its shares at a multiple of five to six times its 2011 sales, compared to a multiple of seven times for both Groupon and Pandora.