Institutional investors optimistic on Twitter IPO
Institutional investors expressed confidence about the initial public offering of social media company Twitter Inc. Chief Executive Officer Dick Costolo and Chief Financial Officer Mike Gupta met with fund managers and analysts on Monday and Tuesday to gather support for Twitter's upcoming IPO.
A fund manager said, "It definitely was different than when (Facebook CEO Mark) Zuckerberg came through ... It's the right kind of buzz." The same manager labeled the buzz created by Facebook as stupid.
According to a Reuters report, Twitter had taken a different approach in its IPO as was done by Facebook. Twitter's deal would be much smaller as it was only looking to raise as much as USD 1.6 billion when it goes public. Facebook, meanwhile, sought to gather USD 16 billion. Twitter also chose to list on the New York Stock Exchange, while Facebook got listed on Nasdaq.
Research firm IPO Boutique Chief Executive Officer Scott Sweet also said Twitter otherwise received a warm welcome. He added, "Of all the individuals and institutions I've talked to - which include multi-billion dollar hedge funds - no one has said they aren't playing."