Twitter sets a modest IPO share price, valuing itself at $11.1bn
The share price is one of the final steps before the company embarks on its investor road-show
Friday 25 October 2013
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.
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