Zynga set its value at $7 billion

Zynga has valued its shares at $8.50 to $10 as the company embarks on its long-awaited initial public offering.

The Facebook games giant’s move has valued the company at about $7 billion – less than half the $20 billion estimates that circulated over the summer.

However it is not unusual for a company to set its share price low to drum up interest, in turn building momentum on its value.

Broader market turmoil, which had ripped through the US over the summer, had caused Zynga to delay its IPO. In the intervening months the extent of the four-year-old company’s profitability and company ethics has come under intense scrutiny.

Zynga’s $10 share price would raise the company about $1 billion, according to a regulatory filing.

New documents also show the firm’s CEO, Mark Pincus, will not be selling his own stock.

If demand is positive the company has an option to sell another 15 million shares.

Plans in place will see Zynga priced on December 15th and have its stock trading a day later.

Zynga will deliver a 30-minute “roadshow” pitch to investors over the next nine days.