Zynga to Sell $400 Million of Shares

It was revealed on Wednesday that Zynga

is looking to sell additional shares three months after going public, in an effort to let investors trim their holdings. According to the

, ZNGA said in a statement that the follow-on offering, with a listed preliminary sales target of $400 million, was intended to “facilitate an orderly distribution of shares and to increase the company's public float.” The social games giant said in a regulatory filing that it would not be receiving any proceeds from the sale. In addition, the new offering will come in advance of the expiration of a 165-day “lock-up” period, in which investors cannot sell. The company has already sold roughly 14%of its outstanding stock in the IPO. Shares in ZNGA initially traded well, but soon started to fall. The stock had a jolt when Facebook announced plans for its own IPO, and is currently up about 42%. The sale will be led by Morgan Stanley and Goldman Sachs with additional underwriters to include Bank of America Merrill Lynch, Barclays Capital, JPMorgan Chase and Allen & Company.