Zynga (ZNGA) Underwriters Botched Up the Pricing
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The underwriters of the Zynga (Nasdaq: ZNGA) IPO are feeling the heat after pricing the deal completely wrong.
With an expected range of $8.50 to $10 per share, the underwriters priced 100 million shares at $10 per share.
Things looked good to start, opening at $11, but then turned quickly south. Today shares are trading down 6.6 percent to $8.87. Wouldn't you know it... right near the $8.50 lower end of the IPO range.
Even at $8.50 per share, the company carries an aggressive market cap of nearly $6 billion. In comparison, traditional gaming company Activision Blizzard, Inc. (Nasdaq: ATVI) has a market cap of $13.4 billion, Electronic Arts Inc. (Nasdaq: ERTS) has a market cap of $6.7 billion, Take-Two Interactive Software Inc. (Nasdaq: TTWO) has a market cap of $1.2 billion.
With an expected range of $8.50 to $10 per share, the underwriters priced 100 million shares at $10 per share.
Things looked good to start, opening at $11, but then turned quickly south. Today shares are trading down 6.6 percent to $8.87. Wouldn't you know it... right near the $8.50 lower end of the IPO range.
Even at $8.50 per share, the company carries an aggressive market cap of nearly $6 billion. In comparison, traditional gaming company Activision Blizzard, Inc. (Nasdaq: ATVI) has a market cap of $13.4 billion, Electronic Arts Inc. (Nasdaq: ERTS) has a market cap of $6.7 billion, Take-Two Interactive Software Inc. (Nasdaq: TTWO) has a market cap of $1.2 billion.
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