Zynga (NASDAQ:ZNGA) announced on Monday that the original SPO underwriters Morgan Stanley and Goldman Sachs had agreed to lift part of the Class A common stock held by the executives and directors, so that they can sell their shares in the secondary offering previously announced by the company. The lifting of the ban will take effect with the secondary offering and these shares can only be sold in this deal.
As previously announced, in order to allow part of the shareholders to sell shares of Class A common stock, Zynga had filed a prospectus with the U.S. Securities and Exchange Commission (SEC) on March 14, 2012. The main purpose of the Zynga SPO is to promote the orderly distribution of Zynga stock, and improve the amount of shares held by the public. Zynga will not receive any proceeds from the sales of stock in this public offering.
Morgan Stanley and Goldman Sachs are acting as the lead underwriters of the Zynga SPO. Bank of America Merrill Lynch, Barclays Bank and JP Morgan Securities work as the Zynga SPO’s deputy-underwriters, Allen served as senior vice underwriters. The offering will be fully performed in accordance with the prospectus.