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Twitter shares priced at $26 ahead of IPO

Published 11/07/2013, 04:27 AM
Updated 11/07/2013, 04:27 AM

Investing.com - Twitter has priced its shares at USD26 each ahead of its stock market floatation on the New York Stock Exchange later Thursday.

The pricing will give the company a market capitalization of about USD18 billion and bring the potential size of the initial public offering to USD2.1 billion.

On Monday, Twitter raised the proposed price range to between USD23 and USD25 a share, up from the earlier range of USD17 to USD20, due to huge investor demand. The micro-blogging network is offering 70 million shares in the IPO, plus an option to buy another 10.5 million.

The USD26 a share rate is for the most part available to large institutional investors and to clients of the banks underwriting the offering.

Goldman Sachs is acting as the lead underwriter for the IPO, working with Morgan Stanley and JPMorgan Chase, while Bank of America Merrill Lynch and Deutsche Bank are also participating.

Retail investors will be able to buy shares in Twitter, which will trade under the symbol "TWTR," after the start of trade on the NYSE later Thursday. Executives from Twitter are to ring the opening bell at the start of the trading day on the NYSE.

It will be the largest technology IPO since Facebook went public in May 2012.

According to its IPO prospectus, Twitter now has 230 million users since starting seven years ago, and 500 million tweets are sent a day, but the company remains unprofitable. In the first half of 2013 Twitter made a loss of USD69 million and posted revenues of USD254 million.

The NYSE has already held a successful test run for Twitter’s IPO, in an attempt to avoid the technical issues that marred Facebook’s high profile debut on the Nasdaq last year.



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