Zynga gears up for flotation

 
Steve Dinneen
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Zynga hopes to begin trading following its upcoming IPO in mid November, before the US holiday season begins with Thanksgiving.

Sources close to the plans said the social gaming company’s plan has not been finalised and could yet change.

All eyes are on Zynga’s debut, which will be followed by a glut of highly anticipated dotcom IPOs. Groupon launched its own roadshow this week and hopes to price its shares in early November.

If it goes ahead, Groupon will become the first major IPO since the market slump that began in the summer, serving as a litmus test for future offerings.

Roadshows typically take two weeks. That means Zynga is looking to start its IPO marketing effort close on the heels of Groupon’s market debut.

Zynga’s flotation has been the source of much speculation, with leaked reports last month speculating it could be delayed until next year amid the market turmoil. US markets have since rallied, gaining 11 per cent this month and giving faith to IPO hopefuls.

The social gaming giant behind FarmVille plans to raise up to $2bn (£1.25bn) from floating around 10 per cent of its shares, giving it a sky-high market capitalisation of as much as $15bn to $20bn.