Home > Finance, Social Media > Twitter IPO Pegs Valuation at Modest $11 billion and Sets IPO Price at $17-$20

Twitter IPO Pegs Valuation at Modest $11 billion and Sets IPO Price at $17-$20

Thursday, October 24th, 2013 Leave a comment Go to comments

With the way some tech and social media stocks are performing today, it’s starting to feel a little like the dot-com bubble era again. In an attempt to avoid Facebook’s notorious IPO stumble, Twitter revealed more modest ambitions, saying its initial offering would raise up to $1.6 billion and value the company at up to about $11 billion.

From Reuters:

The valuation was more conservative than the $15 billion some analysts had expected for the social media phenomenon, potentially attracting investors who might consider the money-losing company’s listing price a better deal, with room to rise.

Twitter had signaled for weeks it would price its IPO modestly to avoid the sort of stock plummet that spoiled Facebook’s coming-out party. It said on Thursday it intends to sell 70 million shares between $17 and $20 apiece, raking in up to $1.4 billion for the company.

If underwriters choose to sell an additional allotment of 10.5 million shares, the offer could raise as much as $1.6 billion.

 

So when should we expect Twitter to make its public debut? It appears Twitter’s IPO date will likely be November 7. Specifically, The New York Times notes:

Twitter has also moved up the pricing of its offering by more than a week, to Nov. 6. That means that the social network would then begin trading on the New York Stock Exchange, under the ticker symbol TWTR, the next day.

 

Sources:

Twitter IPO pegs valuation at modest $11 billion (Reuters)

Twitter Sets I.P.O Price at $17 to $20 a Share (The New York Times)

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