Zynga Offers Early Investors a Way Out
Zynga (NASDAQ:ZNGA) intends to make a secondary offering of stock valued at about $400 million, according to its filing with the Securities and Exchange Commission.
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The offering could facilitate an exit for early-bird investors who might want to cash in on the stock’s 33 percent appreciation since its initial public offering. According to the filing, Zynga is also waiving lock-in clauses on its stock to ease this process. Investors may thus be able to sell their stock earlier than May 28, 2012, the current expiry date of lock-in clauses following the company’s December IPO.
Zynga expects certain existing shareholders to sell class A shares of the stock, though it did not name names, nor hint at the quantity they expect to be sold. Morgan Stanley (NYSE:MS) and Goldman Sachs (NYSE:GS) have been appointed as lead underwriters for the offering.
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