On Monday, Twitter raised the high end of the price range on its IPO. Bloomberg notes that the range went from $17 to $20 to the new range of $23 to $25. However, they kept the offering size available the same at 70 million shares.
But this isn't even the highest the IPO is expected to go for. Reuters and Bloomberg quote sources close to the subject as saying that demand is so high among institutional investors that the final price will beat out the one that was just announced.
Twitter is the largest company out of Silicon Valley to go public since Facebook last year. Bloomberg notes that when Facebook went public, shares fell below the initial price and it took over a year for the company to recover. For Twitter to avoid such a fate, Bloomberg suggests that Twitter not put all it's eggs in the confidence of investors in a rising stock market.
However, Bloomberg also notes that with the current high end value of $25, Twitter's stock would be valued at $13.6 billion, which beats the estimate of $1.15 billion made by the analysts.
The company will debut this week with the IPO closing on Tuesday, a day ahead of schedule due to strong demand.
via Examiner National Edition Gadgets & Tech Channel Articles http://www.examiner.com/article/twitter-raises-price-of-ipo-close-a-day-early?cid=roadrunner