Zynga said to favor small IPO float: report
NEW YORK | Wed Jun 8, 2011 11:19am EDT
(Reuters) - Zynga Inc, which is preparing for an initial public offering, is said to favor selling just a small part of itself in its IPO, according to a report in Bloomberg.
Zynga might float less than 10 percent of its shares, compared to the average U.S. technology IPO share float of 24 percent in the past year, according to the report, which cites a single unnamed source.
Zynga declined to comment.
LinkedIn Corp, which floated just 8 percent of its shares in its IPO, had a similar strategy.
When the shares of a company rise sharply after its IPO, having sold fewer shares to start with means the remaining shares can be sold at a higher price, later.
(Reporting by Clare Baldwin, editing by Gerald E. McCormick)
Credit: Reuters (www.reuters.com)
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