Zynga Enters Into the IPO Game

July 4th, 2011 at 12:34 pm

It’s a great time to be a successful tech company these days. Investors are currently attracted to all things tech and try to put their bets into such companies, at least those that are known and popular. And because of the attention that they are getting in business and investment circles these days, it’s even a greater time for such companies to be going public. It may not be surprising, therefore, that social gaming developer Zynga is on its way to filing for its own IPO.

The company Zynga may not immediately ring any bells to those who may not be in tech circles. But if you are one of the millions who have played the wildly popular FarmVille at Facebook, then you may have heard about its maker and developer. Just like its wildly popular social games on Facebook, it has become quite popular among investment circles as well. Many investors have been waiting for the time for the company to finally go public. And it seems that the time has arrived.

Zynga has recently filed for its Form S-1 registration statement at the US Securities and Exchange Commission, the first step towards conducting an IPO and making the company public. According to reports, the social gaming company is expecting to raise about $1 billion at its planned IPO. The share prices and the number of shares to be sold has not yet been made public for now. Zynga has enlisted the help of investment banks like Morgan Stanley, Goldman Sachs, Merrill Lynch and several others to act as underwriters.

Zynga will be one of among several tech companies that have recent plans of going public. One of the notable IPO’s recently talked about was the one from professional network site LinkedIn which became public around a couple of weeks ago. To show just how attractive tech shares are among investors today, the online professional network site saw its share price jump about twofold during its first day of trading at the New York Stock Exchange. Zynga may be hoping to get the same level of activity for its shares at the stock market during its own IPO. Still another company planning its own IPO is that of online daily deals site GroupOn which has filed for its IPO papers around a month ago.

With the recent attention tech companies going public may be having, analysts and experts are already talking about another tech bubble being formed. It is currently in its early stages and there might still be room for the bubble to grow even bigger. But no one can tell for sure just how long the bubble will hold before it might burst once again, or when the cycle may repeat itself in the future.


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