Following its initial public offering last December, social games giant Zynga has now announced that more than 42 million shares in the company will be sold at a price of $12 per share in a secondary offering.
Despite a rocky start for Zynga's Wall Street debut
, the company's stock has held firm around $12-13 per share since it was revealed last month that Facebook will soon make an initial public offering
with the Securities & Exchange Commission.
Earlier this month it filed for a $400 million secondary offering
. The company has now said that 42,969,153 shares of its Class A common stock will be priced at $12 per share in the secondary offering, with all the shares being sold by existing stockholders.
All stockholders have also agreed to "lock-up" agreements that extend the transfer restrictions on shares for at least the next 90 days following this secondary offering. These lock-up periods are when company insiders are restricted from selling any of their shares.
An additional 6,445,373 shares will be made available to underwriters for purchase.
Zynga said in a statement that the purpose of the secondary offering is to "facilitate an orderly distribution of shares and to increase the company's public float." It was keen to note that it will not receive any proceeds from the sale of any shares in this offering.