Twitter shares priced between USD17 and USD20
Twitter is projecting as much as USD1.4 billion in the possibly the largest initial public offering since Facebook Inc would be able convince investors of its ability to translate 500 million tweets a day into profits for the company.
The plan is sell 70 million shares at a price range between USD17 and USD20 for the offer. At the top range of the share price, the company would be valued at USD10.9 billion, which is lower compared to Facebook and LinkedIn. This is based on the volume of 544.7 million common shares outstanding after the IPO. The IPO price would be set by Nov.6, according to Bloomberg compiled data.
The six year old microblogging site that draws 230 million monthly users and has influenced the the manner in which people communicate. It is taking advantage of the increased appetite for social media shares selling through the sale of a 13% stake. The revenues of the company have doubled annually, it has not turned a profit and user gains is slowing. Twitter CEO Dick Costolo is hedging that the expansion of the service into the mobile space to entice advertisers into the service.