Increase in Twitter’s Price Range for IPO
There is high optimism among Twitter about investor appetite for its initial public offering. The company has increased the price range for its IPO to $23 to $25. Well, this new price range has now increased Twitter's potential market value by several billion dollars.
The value of Twitter is likely to be valued at $13.9 billion at the beginning of its first day of trading. The figure is higher than companies like Groupon and Zynga. But, Facebook is still ahead of Twitter in terms of value, i. e. $119 billion.
The increase in price range will also increase the amount of money to be raised by the company itself.
The company said in a filing on October 24 that it was looking well set to sell 70 million shares at $17 to $20 each. The filing was with the Securities and Exchange Commission.
Twitter seems to have gained strength by its road show. According to people with knowledge of the process, Twitter is looking forward to close the order books for its IPO on Tuesday, which is a day earlier than scheduled.
"Twitter was reserved in how they approached their I. P. O., and that was a good move on their part. That conservative approach is now paying off for them. This doesn't seem to be spooking people", said Brian Blau, research director at Gartner.