An innovative way to discover the story of Palestine
We examine the plight of Sri Lanka's war widows
25 Oct 2013 02:33 GMT | Business & Economy
Twitter has set a relatively modest price range of $17 to $20 per share for its initial public offering (IPO), and says it could raise as much as $1.6bn in the process.
The pricing is relatively conservative considering that Twitter is poised to pull off the year's hottest IPO.
Twitter Inc said in a regulatory filing on Thursday that it will put forth 70m shares in the offering. If all the shares are sold, the underwriters can buy another 10.5m shares.
At the $20 share price, Twitter's market value would be around $12.5bn, roughly one-tenth of Facebook's current valuation.
Twitter's value is based on 625.2m outstanding shares expected after the offering, including restricted stock units and stock options.
The San Francisco-based short-messaging service plans to list its stock under the ticker symbol "TWTR" on the New York Stock Exchange. The shares will likely start trading in early November.
Twitter will begin its IPO "roadshow" as early as Friday, meeting with prospective investors to pitch its stock.
Playing it safe
Some analysts had expected the figure to be as high as $20bn. In August, Twitter priced some of its employee stock options at $20.62, based on an appraisal by an investment firm.
Twitter's caution suggests that the company learned from Facebook's rocky initial public offering last year.
Rather than set expectations too high, Twitter is playing it safe and will very likely raise its price range closer to the IPO, and thus fuel demand.
Facebook's IPO was marred by technical glitches on the Nasdaq Stock Exchange in May of 2012. As a result, the Securities and Exchange Commission fined Nasdaq $10m, the largest ever levied against an exchange.
Those problems likely led Twitter to the NYSE.
Company discloses it generated $317m in revenue in 2012 and had more than 218 million users as of the end of June.
Business & Economy
Social media site, estimated to be worth $10bn, says in a message that it has begun preparing to list on stock exchange.
Science & Technology, Business & Economy
Content on this website is for general information purposes only. Your comments
are provided by your own free will and you take sole responsibility for any direct
or indirect liability. You hereby provide us with an irrevocable, unlimited, and
global license for no consideration to use, reuse, delete or publish comments, in
accordance with Community Rules & Guidelines and Terms and Conditions.
Ahead of World Malaria Day, doctors urge governments to find solutions to prevent infection and death.
Health, Africa, Congo
EU politicians are scrambling for solutions after the boat disaster that drowned more than 800 migrants.
Migrants, Europe, Africa
Revolutionary video-sharing site marks a decade of life, but some question whether it has bettered humanity.
Internet, United States, Iran
Student leaders at prestigious School of Oriental and African Studies press for a severance of Israel university ties.
War & Conflict, Europe, Gaza: After the war
Thousands of Turks commemorate centenary of 1915 mass killings of Armenians, despite Ankara's refusal to admit genocide.
Human Rights, Politics, Europe, Armenia, Turkey
Prominent rights activist killed shortly after hosting an event on people missing in Balochistan at her Karachi cafe.
Asia, Pakistan, Human Rights
Kite-balloons and spectrometers - how community activists use DIY technology to investigate environmental polluters.
Environment, Science & Technology, US & Canada
The story of a young Chinese woman who sells her time online to earn money by helping strangers with their errands.
Business & Economy, Human Rights, China
Fault Lines investigates how the US helped create the world's newest nation, and then watched it spiral into civil war.
War & Conflict, Politics, South Sudan
An examination of the deep wound that remains at the heart of Turkish-Armenian relations.
War & Conflict, Politics, US & Canada