MapleStory maker stumbles on first day trading, bad news for Zynga?
Still, Nexon managed to raise $1.17 billion in its initial public offering (IPO), just a hair shy of its $1.2 billion goal marked last week. The CityVille creator is said to go public as soon as Thursday, looking to raise $1.15 billion on the Nasdaq as "ZNGA". It's almost no doubt that Zynga will get at least close to its goal, but if the pioneer of free-to-play games in the Western world can't keep its stock price steady for a single day, investors might wonder the same for the company behind FarmVille.
Keep in mind, however, that Nexon debuted in an entirely different market. (Though, the company offered shared in the US, too.) What's most worrisome is that Nexon is far older, and you'd imagine more experienced, than Zynga, but still couldn't hang on the first day of trading.
Despite its dependence on Facebook, Zynga's CEO Mark Pincus told investors that it could double its base of paying players in 2012. And while he seems to have made no effort to explain how, CrowdStar CEO Peter Relan seems to agree. We'll whether Zynga's efforts on its IPO roadshow were enough by Friday, or so they say.
Do you think Nexon's first-day experience is indicative of what Zynga might go through with its IPO? Would you invest in Zynga at this point? Sound off in the comments. Add Comment.