Americans in general may not be excited by the initial public offering of Twitter Inc. this week, but investors in particular might be dedicated followers of fashion with respect to the microblogging-service company as the firm raised and tightened its anticipated IPO share-price range Monday.
Twitter’s expected share-price range climbed to between $23 and $25 from between $17 and $20, as noted in a form filed with the U.S. Securities and Exchange Commission. The company still is prepared to sell 80.5 million shares in its IPO. As a result, the firm could collect about $2.01 billion.
Twitter’s move to boost the high end of its potential share-price range by 25 percent indicates strong demand for the company’s equity, Reuters reported. The shares’ actual price will be determined Wednesday, and trading in them under the New York Stock Exchange symbol TWTR will launch Thursday.
The new pricing would give Twitter a market value of as much as $13.6 billion, according to eMarketer, a digital-market research firm cited by Reuters. At the close of stock-market trading Monday, Twitter’s social-media peers Facebook Inc. (NASDAQ:FB) and the LinkedIn Corp. (NYSE:LNKD) had market capitalizations of $117.17 billion and $26.71 billion, respectively.
According to the results of a recent Twitter IPO survey carried out on behalf of The Associated Press and CNBC, 36 percent of Americans said buying stock in the company would be a good investment and 47 percent of them said purchasing it would not be a good one, AP reported Monday.