Our special coverage of the closest race for years
Fault Lines on the city's homelessness crisis
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.
The clear-cutting of forests is thought to have played a role in Malaysia's worst flooding in decades.
Environment, Asia Pacific, Malaysia
Activists in the Czech Republic demand that a pig farm built over a former WWII era concentration camp be shut down.
Politics, War & Conflict, Human Rights
In religiously conservative Brazil, women risk jail time and their lives to undergo the procedure that is illegal but commonplace.
Health, Human Rights, Latin America
Trash is a fast-growing import in the Scandinavian country, which turns it into heat for people's homes.
Environment, Europe, Sweden
Guards killed as masked gunmen storm university complex in town of Garissa near Somalia border, police tells Al Jazeera.
War & Conflict, Africa, Al-Shabab, Kenya
At least five soldiers and more than a dozen gunmen killed in twin-ambush in northern Sinai, police sources say.
War & Conflict, Middle East, Egypt
When big pharma blocks essential HIV/AIDS medication to the third world, it is the poor who suffer.
Human Rights, Science & Technology, Health
We follow the rise of Malaysia's first professional female mixed martial artist as she faces the fight of her life.
Sport, Asia, Malaysia
Al Jazeera World follows the everyday lives of Aleppo residents living amid the ongoing conflict and destruction.
War & Conflict, Politics, Syria: Broken Nation
Persecuted Rohingya Muslims fleeing Myanmar face a dangerous journey on their way to freedom in Thailand and Malaysia.
Human Rights, Malaysia, Myanmar