Twitter raises $US1.8 billion with IPO, shares surge more than 80%
Social network, which claims 232 million monthly active users and $422 million annual revenue, soars on NYSE debut.
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Nov 8: Twitter surged more than 80% after its stock (NYSE:TWTR) listed on the New York Stock exchange this morning.
Through underwriters Goldman Sachs, Morgan Stanley and JPMorgan Chase, the social network sold 70 million shares prices at $26 - raising the company $US1.82 billion.
According to The Wall Street Journal, which has been breathlessly live-blogging the listing, that makes it the third-largest IPO in the US this year, and the largest tech IPO since Facebook listed in May last year.
The underwriters have the option to buy other 10 million shares.
Intense demand for the shares released in the IPO saw the stock rise sharply. In early afternoon trading shares were up 83.54% to $US47.72 - implying a total market cap of just under $US26 billion.
It seemed Twitter had been very conservative with its IPO price low - perhaps in reaction to Facebook's disastrous plunge last year after it listed at what turned out to be an over-ambitious price.
None of Twitters founders or other insiders sold shares in the IPO - although co-founder Jack Dorsey was on the NYSE trading floor, from where he posted a Vine video:
just setting up our $twtr https://t.co/OqQRtzaw9v
— Jack Dorsey (@jack) November 7, 2013
Twitter claims 232 million monthly active users.
According to its IPO filing, it had revenue of $422 million last year.
The company posted a loss of $US134 million in the first nine months of its currently financial year.
NBR staff
Fri, 08 Nov 2013
Fri, 08 Nov 2013
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Twitter raises $US1.8 billion with IPO, shares surge more than 80%
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