Social games company Zynga has filed for an initial public offering of shares in the US. While the company has yet to set a price or total number of shares to be sold, it estimated proceeds from the IPO at USD 1 billion in order to calculate the registration fee with the SEC. Zynga counts an audience of 148 million monthly unique users in 166 countries for its popular Facebook games such as Farmville and Cityville. The company plans to use the proceeds from the IPO for working capital, game development, marketing activities and capital expenditure. In the first three months of 2011, Ziynga generated revenues of USD 235 million, more than double the USD 101 million a year earlier. Revenues come mainly from advertising and the sale of virtual goods to game players. Its net profit rose to USD 11.8 million in Q1 from USD 4.2 million a year earlier.
