Social gaming company Zynga has priced its stock at US$10 per share and raised US$1bn in its initial public offering, which is set to be the largest internet IPO since Google.
Zynga offered 100m shares for US$10 each, which was the top end of the US$8.50 to US$10 indicative range. The IPO now values the company at US$7bn.
Certain Zynga stockholders have granted underwriters a 30-day option to buy an extra 15m shares to cover over-allotments.
The IPO is the largest from a US internet company since Google’s IPO in 2004, which raised US$1.9bn.
Zynga’s IPO was much anticipated, particularly as it comes before Facebook’s plan to go public.
Zynga has made huge gains releasing highly successful titles such as FarmVille, CityVille and Mafia Wars through social networking site Facebook. Its sales doubled to US$829m in the first nine months of 2011, making much of its money through selling virtual goods and advertising.