Rampant demand drives up Twitter IPO price range
Microblogging company could reap up to $2bn from flotation
Interest from institutional investors in Twitter's forthcoming IPO has pushed the microblogging company's predicted stock price range up from $17-$20 to $23-$25, according to a report from Reuters.
Insiders believe the price could go higher, but even at the current level, given the 70m shares to be offered and allowing for an overallotment option of 10.5m shares, the company could raise up to $2bn.
The planned deadline for initial order completion is today at 5pm GMT. Twitter has sought a far more modest $13.6bn valuation than that of social media giant Facebook Inc, which went to market at $100bn.
The final price for shares will be set tomorrow, with shares to begin trading on the New York Stock Exchange on Thursday.
Twitter reported third-quarter revenue had more than doubled to $168.6m, but net losses increased to $64.6m from $21.6m a year earlier. The company has yet to make a profit, but has managed to grow a user base of 230m in seven years. Some investors are anxious about Twitter's lack of intellectual property and its reliance on advertising sales.