Zynga IPO Low-Float: Public Shares Limited

We’ve been giving you a lot of news from social gaming experts Zynga lately, with details of the new Empire & Allies game and also telling how Zynga’s IPO (initial public offering) filing was imminent. Now we hear that Zynga is heading towards what is termed a “low-float” IPO where public shares will be limited.

Zynga, famous for social games on Facebook such as CitiVille and FarmVille is one of the many tech and social media firms such as Facebook and Groupon that has plans for an IPO. We also gave you an infographic recently that looked into recent over-the-top valuations for social media sites and asked if another tech bubble was imminent. News of Zynga’s intended “low-float” IPO comes to us from Todd Wasserman over on Mashable, sourced from Bloomberg, who says that a relatively small percentage of shares would be offered to the public, maybe less than 10% in fact.

A date for Zynga’s IPO has not yet been established but a recent IPO for LinkedIn sold only 8.3% of its stock on the first day of trading while Pandora will sell 8.6%. The idea behind these low-float offerings is to allow companies to keep more control and also bumps up stock prices as supply is small while demand is high.

What are your thoughts on Zynga’s plans for a low-float IPO? Do you think it makes sense to keep public shares low? Let us know with your comments.