Twitter IPO set to reap at least $1.8bn

Above-range share price locked in as microblogging firm gets ready for NYSE trading

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Twitter IPO set to reap at least $1.8bn If underwriters use the over-allotment option Twitter’s flotation value could reach $2.09m.
By  Stephen McBride Published  November 7, 2013

Twitter's IPO is set to raise at least $1.8bn for the microblogging company as strong investor demand drove the opening share price to $26, a level above all previous estimated price ranges.

The initial range announced was $17-$20. This was revised on Tuesday to $23-$25 after institution investors showed overwhelming interest in the stock.

Twitter will issue 70m shares, which values the IPO at $1.82bn, but underwriters are expected to use the 10.5m shares allocated for over-allotment, which would drive the flotation value to $2.09m. According to Reuters, if this were to happen, Twitter's IPO would be the second largest US Internet IPO behind Facebook's $16bn launch last year and ahead of Google's 2004 flotation.

Some analysts believe the shares will gain at least $4 in their first trading day. Reuters also reported that 12-month projections on the stock range from $29 to $54.

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