Twitter has revealed the price range for its shares ahead of its flotation on the New York Stock Exchange, saying it plans to sell 70 million shares at between $17 and $20 (£10 - £12), a valuation that will raise up to $1.4bn (£865m) for the company.
This is an increase on the company’s pre-IPO filing back in September, when it outlined plans to raise $1bn from its shares.
These most recent figures give a total valuation for the micro-blogging site of $11.1bn, a relatively conservative estimate that analysts believe has been decided on in order to avoid the mistakes experienced during Facebook’s IPO in 2012.
Facebook’s shares were initially priced at $38 and their IPO was accompanied by a speculative frenzy that boosted this to $45. Prices quickly plummeted however and it is only since September of this year that the company has surpassed that initial high.
Previous estimates of Twitter’s total valuation had been between $15bn and $16bn, with shares priced between $28 and $30. Facebook’s current valuation is $128bn, whilst tech giants like Google and Apple are pegged at $342bn and $483bn respectively.Reuse content