Twitter puts a price on its proposed IPO
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| Twitter puts a price on its proposed IPO |
The
social network Twitter has finally encrypted Thursday its IPO project,
in the most optimistic scenario would allow him to raise $ 1.61 billion
and would value totaling some $ 11 billion.
In an updated version of the project published on the website of the U.S. stock gendarme (SEC ) , Twitter announced that it intends to market 70 million shares at a price between 17 and 20 dollars.
As usual in this kind of operation , the final price will be set on the eve of the operation itself , after a roadshow ( " roadshow " ) to potential investors .
Twitter still does not say what date he plans to take his first steps on the market, but the Wall Street Journal talks about the Nov. 7 on the basis of sources familiar with the matter .
Twitter expected if significant demand over-allotment option on 10.5 million additional shares , bringing the total number of ordinary shares outstanding after the operation to about 555 million.
prudent valuation
prudent valuation
On this basis, it is therefore estimated to total between 9.3 and 11.1 billion dollars, a relatively low level compared to the figures circulating in the media, and sometimes amounted to 15 or 20 billion.
For Michael Pachter , " the company intends to create a lot of demand , and they intentionally keep the volume low to ensure that the demand will exceed supply . This should happen at that price ."
" This initial range leaves the possibility of raising the eventual IPO price , which would reinforce the idea that the market demand is high , and still leaves room for a nice progression on the first day of trading ," Judge as Lou Kerner , founder of Internet investment fund Social fund.
The IPO of Twitter is one of the most anticipated of the year. The challenge for the social network , however, to avoid the mistakes of his great rival Facebook , which saw its IPO in May 2012 quickly turned into a nightmare .
Avoid errors Facebook
The first trading session on the Nasdaq electronic platform was punctuated by numerous technical problems , and Facebook was quickly faced with a slump in its share price , he had several months to contain.
Avoid errors Facebook
Twitter plans to list its shares , which carry the symbol " TWTR " on another marketplace , the New York Stock Exchange.
He also chose a more modest entry into Exchange as his rival where Facebook had raised $ 16 billion last year , Twitter does not provide , on the basis of figures Thursday between 1.19 billion revenue if the lowest price is accepted, and 1.61 billion if it is fixed in the upper range and the over-allotment option is exercised.
Twitter says in its paper stock that will use the proceeds to fund its operating and investment activities, but said that the operation is primarily intended to " increase our capitalization and financial flexibility , create a public market for our securities and give us access to equity markets . "
Even if the two networks are often opposed , Twitter has not at all the same scale as Facebook . He claimed 231.7 million users in late September, against 1.15 billion for its rival.
Twitter is also deficient , with a net loss of even 134 million dollars in the first nine months of 2013 , despite strong growth in its turnover more than doubled over the same period to 422 million dollars.
His ability to become profitable is uncertain , although it has increased in recent months efforts to increase its advertising revenue, inter alia with offers for the TV networks .
Twitter has also announced earlier Thursday recruitment activities responsible for digital television group NBC News , Vivian Schiller, to handle its media partnerships .
In an updated version of the project published on the website of the U.S. stock gendarme (SEC ) , Twitter announced that it intends to market 70 million shares at a price between 17 and 20 dollars.
As usual in this kind of operation , the final price will be set on the eve of the operation itself , after a roadshow ( " roadshow " ) to potential investors .
Twitter still does not say what date he plans to take his first steps on the market, but the Wall Street Journal talks about the Nov. 7 on the basis of sources familiar with the matter .
Twitter expected if significant demand over-allotment option on 10.5 million additional shares , bringing the total number of ordinary shares outstanding after the operation to about 555 million.
prudent valuation
prudent valuation
On this basis, it is therefore estimated to total between 9.3 and 11.1 billion dollars, a relatively low level compared to the figures circulating in the media, and sometimes amounted to 15 or 20 billion.
For Michael Pachter , " the company intends to create a lot of demand , and they intentionally keep the volume low to ensure that the demand will exceed supply . This should happen at that price ."
" This initial range leaves the possibility of raising the eventual IPO price , which would reinforce the idea that the market demand is high , and still leaves room for a nice progression on the first day of trading ," Judge as Lou Kerner , founder of Internet investment fund Social fund.
The IPO of Twitter is one of the most anticipated of the year. The challenge for the social network , however, to avoid the mistakes of his great rival Facebook , which saw its IPO in May 2012 quickly turned into a nightmare .
Avoid errors Facebook
The first trading session on the Nasdaq electronic platform was punctuated by numerous technical problems , and Facebook was quickly faced with a slump in its share price , he had several months to contain.
Avoid errors Facebook
Twitter plans to list its shares , which carry the symbol " TWTR " on another marketplace , the New York Stock Exchange.
He also chose a more modest entry into Exchange as his rival where Facebook had raised $ 16 billion last year , Twitter does not provide , on the basis of figures Thursday between 1.19 billion revenue if the lowest price is accepted, and 1.61 billion if it is fixed in the upper range and the over-allotment option is exercised.
Twitter says in its paper stock that will use the proceeds to fund its operating and investment activities, but said that the operation is primarily intended to " increase our capitalization and financial flexibility , create a public market for our securities and give us access to equity markets . "
Even if the two networks are often opposed , Twitter has not at all the same scale as Facebook . He claimed 231.7 million users in late September, against 1.15 billion for its rival.
Twitter is also deficient , with a net loss of even 134 million dollars in the first nine months of 2013 , despite strong growth in its turnover more than doubled over the same period to 422 million dollars.
His ability to become profitable is uncertain , although it has increased in recent months efforts to increase its advertising revenue, inter alia with offers for the TV networks .
Twitter has also announced earlier Thursday recruitment activities responsible for digital television group NBC News , Vivian Schiller, to handle its media partnerships .
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